AB661_EN

Assembly Bill No. 661–Select Committee on Energy

CHAPTER..........

AN ACT relating to energy; authorizing certain eligible customers to purchase electrical energy, capacity and certain ancillary services from providers of new electric resources; establishing the universal energy charge to fund low-income energy assistance and conservation; requiring certain retail customers to pay the universal energy charge; requiring certain public utilities and municipal utilities to perform certain functions related to the universal energy charge; creating the fund for energy assistance and conservation and setting forth the criteria to determine the eligibility of a household to receive assistance from money in the fund; authorizing certain agencies to render emergency assistance to households in certain circumstances; revising and repealing various provisions concerning the regulation of public utilities and the process of establishing and changing rates; expanding the public utilities commission of Nevada from three to five members; revising the authority of the commission to regulate mergers, acquisitions and certain other transactions involving public utilities and other entities; making various changes with respect to net metering; authorizing the director of the department of business and industry to issue industrial development revenue bonds for certain renewable energy generation projects; creating the task force for renewable energy and energy conservation and prescribing its membership and duties; creating the trust fund for renewable energy and energy conservation; creating the office of energy within the office of the governor; transferring control of the Nevada state energy office from the director of the department of business and industry to the office of energy within the office of the governor; requiring certain lodging establishments to include certain information concerning energy costs on their statement of rates; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. For the purposes of sections 3 to 26, inclusive, of this act,

the legislature hereby finds and declares that:

1. A reliable and reasonably priced supply of electricity is critical to

the economy of this state and to the health, safety and welfare of the

residents of this state;

2. The electric utilities in this state depend on regional energy markets

to purchase approximately 50 percent of the electricity needed to serve

their customers in this state, and such purchases are often made pursuant

to agreements with terms of 1 year or less;

3. The energy markets in the western United States currently are

characterized by critical shortages in the supply of electricity and

extremely high prices for electricity, both of which are damaging to the

strength of the economy of this state and to the well-being of the residents

of this state;

4. The residents of this state would benefit from construction of new

generation assets in this state and from access to other new electric

resources, wherever located, that provide lower-priced electricity;

5. The economic development that would result from construction in

this state of new generation assets, supporting gas pipelines and additional

infrastructure would be of special benefit to the rural areas of this state

where the new generation assets are most likely to be located;

6. During this session, the legislature has considered a number of

different but complementary approaches to developing and using new

generation assets and other new electric resources and to increasing the

supply of reasonably priced electricity in this state;

7. The development and use of new generation assets and other new

electric resources by eligible customers would permit the electric utilities

in this state to reduce their dependence on purchases of excessively priced

electricity from dysfunctional, short-term energy markets and would

thereby reduce the average system costs for such electric utilities;

8. The development and use of new generation assets and other new

electric resources can be encouraged by allowing eligible customers to use

their own resources, initiative, expertise and credit to develop, access and

enter into agreements for the purchase of electricity from new generation

assets and other new electric resources; and

9. To protect the electric utilities in this state and their remaining

customers, all transactions proposed by eligible customers pursuant to

sections 3 to 26, inclusive, of this act must be carefully reviewed by the

public utilities commission of Nevada to ensure that the electric utilities in

this state and their remaining customers are not subject to increased costs

as a result of the proposed transactions and that the proposed transactions

are not otherwise contrary to the public interest.

Sec. 2. Title 58 of NRS is hereby amended by adding thereto a new

chapter to consist of the provisions set forth as sections 3 to 26, inclusive,

of this act.

Sec. 3. As used in this chapter, unless the context otherwise

requires, the words and terms defined in sections 4 to 16, inclusive, of

this act have the meanings ascribed to them in those sections.

Sec. 4. “Ancillary services” means those generation services that:

1. Are necessary to support the transmission of energy and capacity

from resources to loads while maintaining reliable operation of the

transmission system of the electric utility; and

2. Are defined and established in applicable transmission tariffs on

file with the Federal Energy Regulatory Commission.

Sec. 5. “Calendar quarter” means each period of 3 consecutive

calendar months ending on March 31, June 30, September 30 and

December 31 in each calendar year.

Sec. 6. “Commission” means the public utilities commission of

Nevada.

Sec. 7. 1. “Electric utility” means any public utility or successor in

interest that:

(a) Is in the business of providing electric service to customers;

(b) Holds a certificate of public convenience and necessity issued or

transferred pursuant to chapter 704 of NRS; and

calendar year within the 7 calendar years immediately preceding the

most recently completed calendar year, had a gross operating revenue of

$250,000,000 or more in this state.

2. The term does not include a cooperative association, nonprofit

corporation, nonprofit association or provider of electric service which is

declared to be a public utility pursuant to NRS 704.673 and which

provides service only to its members.

Sec. 8. “Electric utility that primarily serves densely populated

counties” means an electric utility that, with regard to the provision of

electric service, derives more of its annual gross operating revenue in

this state from customers located in counties whose population is

400,000 or more than it does from customers located in counties whose

population is less than 400,000.

Sec. 9. “Electric utility that primarily serves less densely populated

counties” means an electric utility that, with regard to the provision of

electric service, derives more of its annual gross operating revenue in

this state from customers located in counties whose population is less

than 400,000 than it does from customers located in counties whose

population is 400,000 or more.

Sec. 10. “Eligible customer” means an end-use customer which is:

1. A nongovernmental commercial or industrial end-use customer

that has an average annual load of 1 megawatt or more in the service

territory of an electric utility.

2. A governmental entity, including, without limitation, a

governmental entity providing educational or health care services, that:

(a) Performs its functions using one or more facilities which are

operated under a common budget and common control; and

(b) Has an average annual load of 1 megawatt or more in the service

territory of an electric utility.

Sec. 11. “Energy” means electrical energy.

Sec. 12. “Generation asset” means any plant, facility, equipment or

system which is located within or outside this state and which converts

nonelectrical energy into electrical energy or otherwise produces

electrical energy.

Sec. 13. “New electric resource” means:

1. The energy, capacity or ancillary services and any increased or

additional energy, capacity or ancillary services which are:

(a) Made available from a generation asset that is not owned by an

electric utility or is not subject to contractual commitments to an electric

utility that make the energy, capacity or ancillary services from the

generation asset unavailable for purchase by an eligible customer; and

(b) Able to be delivered to an eligible customer.

2. Any increased energy, capacity or ancillary services made

available from a generation asset pursuant to an agreement described in

section 18 of this act.

Sec. 14. “Person” means:

1. A natural person.

2. Any form of business or social organization and any other

nongovernmental legal entity, including, without limitation, a

corporation, partnership, association, trust or unincorporated

organization.

3. A governmental entity other than:

(a) This state or an agency or instrumentality of this state; or

(b) A political subdivision of this state or an agency or instrumentality

of a political subdivision of this state.

Sec. 15. “Provider of new electric resources” and “provider” mean a

person who makes energy, capacity or ancillary services from a new

electric resource available to an eligible customer.

Sec. 16. “Time-of-use meter” means a meter that:

1. Measures and records the electric demand, energy and power

factor on 15-minute intervals; and

2. Is suitable for use with an electric demand of 1 megawatt or more.

Sec. 17. 1. The provisions of this chapter do not alter, diminish or

otherwise affect any rights or obligations arising under any contract

which requires an electric utility to purchase energy, capacity or

ancillary services from another party and which exists on the effective

date of this act.

2. Each electric utility or its assignee shall comply with the terms of

any contract which requires the electric utility or its assignee to

purchase energy, capacity or ancillary services from another party and

which exists on the effective date of this act.

Sec. 18. 1. Except as otherwise provided in this section, an electric

utility may, at its discretion, enter into agreements relating to its

generation assets and the energy, capacity or ancillary services provided

by its generation assets with one or more other persons who are not

electric utilities. Such agreements, without limitation:

(a) May include agreements to construct or install a new generation

asset on real property that is adjacent to an existing generation asset

owned by the electric utility; and

(b) May provide for the sharing of available common facilities with

the existing generation asset or the reengineering, repowering or

expansion of the existing generation asset to generate energy more

efficiently and at a lower cost and to make more energy available to

customers in this state.

2. Any increased energy, capacity or ancillary services made

available from a new generation asset or an existing generation asset

pursuant to an agreement described in subsection 1 shall be deemed to

be a new electric resource that may be:

(a) Owned by the parties to the agreement who are not electric

utilities; and

(b) Used or consumed by such parties for their own purposes, sold at

wholesale by such parties or sold by such parties to one or more eligible

customers pursuant to the provisions of this chapter.

3. A transaction undertaken pursuant to an agreement described in

subsection 1:

(a) Must not impair system reliability or the ability of the electric

utility to provide electric service to its customers; and

(b) Must not violate the provisions of sections 8 to 18, inclusive, of

Assembly Bill No. 369 of this session.

4. The provisions of this section do not exempt any party to an

agreement described in subsection 1 from any applicable statutory or

regulatory requirements relating to siting, construction and operation of

a generation asset.

5. The commission shall encourage the development of new electric

resources and shall not exercise its regulatory authority in a manner

that

unnecessarily or unreasonably restricts, conditions or discourages any

agreement described in subsection 1 that is likely to result in increased

energy, capacity or ancillary services from a generation asset or

improved or more efficient operation or management of a generation

asset.

Sec. 19. 1. Except as otherwise provided in this section, a provider

of new electric resources may sell energy, capacity or ancillary services

to one or more eligible customers if the eligible customers have been

approved to purchase energy, capacity and ancillary services from the

provider pursuant to the provisions of sections 20 and 21 of this act.

2. A provider of new electric resources shall not sell energy, capacity

or ancillary services to an eligible customer:

(a) Before April 1, 2002, if the eligible customer’s load is in the

service territory of an electric utility that primarily serves less densely

populated counties;

(b) Before June 1, 2002, if the eligible customer’s load is in the

service territory of an electric utility that primarily serves densely

populated counties; or

3. A provider of new electric resources that sells energy, capacity or

ancillary services to an eligible customer pursuant to the provisions of

this chapter:

(a) Does not become and shall not be deemed to be a public utility

solely because of that transaction; and

(b) Does not become and shall not be deemed to be subject to the

jurisdiction of the commission except as otherwise provided in this

chapter or by specific statute.

4. If a provider of new electric resources is not a public utility in this

state and is not otherwise authorized by the provisions of a specific

statute to sell energy, capacity or ancillary services at retail in this state,

the provider shall not sell energy, capacity or ancillary services at retail

in this state to a person or entity that is not an eligible customer.

Sec. 20. 1. An eligible customer that is purchasing electric service

from an electric utility shall not purchase energy, capacity or ancillary

services from a provider of new electric resources and an eligible

customer that is purchasing energy, capacity or ancillary services from a

provider of new electric resources shall not purchase energy, capacity or

ancillary services from another provider unless:

(a) The eligible customer files an application with the commission not

later than 180 days before the date on which the eligible customer

intends to begin purchasing energy, capacity or ancillary services from

the provider; and

(b) The commission approves the application by a written order issued

in accordance with the provisions of this section and section 21 of this

act.

The date on which the eligible customer intends to begin purchasing

energy, capacity or ancillary services from the provider must not be

sooner than the date on which the provider is authorized by section 19 of

this act to begin selling energy, capacity or ancillary services to the

eligible customer.

2. Except as otherwise provided in subsection 3, each application

filed pursuant to this section must include:

(a) Information demonstrating that the person filing the application is

an eligible customer;

(b) Information demonstrating that the proposed provider will provide

energy, capacity or ancillary services from a new electric resource;

transaction that is necessary for the commission to evaluate the impact

of the proposed transaction on customers and the public interest,

including, without limitation, information concerning the duration of

the proposed transaction and the amount of energy, capacity or ancillary

services to be purchased from the provider; and

(d) Any other information required pursuant to the regulations

adopted by the commission.

3. Except as otherwise provided in section 21 of this act, the

commission shall not require the eligible customer or provider to

disclose:

(a) The price that is being paid by the eligible customer to purchase

energy, capacity or ancillary services from the provider; or

(b) Any other terms or conditions of the proposed transaction that the

commission determines are commercially sensitive.

4. The commission shall provide public notice of the application of

the eligible customer and an opportunity for a hearing on the

application in a manner that is consistent with the provisions of NRS

703.320 and the regulations adopted by the commission.

5. The commission shall approve the application of the eligible

customer unless the commission finds that the proposed transaction:

(a) Will be contrary to the public interest; or

(b) Does not comply with the provisions of section 21 of this act, if

those provisions apply to the proposed transaction.

6. In determining whether the proposed transaction will be contrary

to the public interest, the commission shall consider, without limitation:

(a) Whether the electric utility that has been providing electric service

to the eligible customer will be burdened by increased costs as a result of

the proposed transaction or whether any remaining customer of the

electric utility will pay increased costs for electric service as a result of

the proposed transaction;

(b) Whether the proposed transaction will impair system reliability or

the ability of the electric utility to provide electric service to its remaining

customers; and

ancillary services to the supply in this state.

7. If the commission approves the application of the eligible

customer:

(a) The eligible customer shall not begin purchasing energy, capacity

or ancillary services from the provider pursuant to the proposed

transaction sooner than 180 days after the date on which the application

was filed; and

(b) The commission shall order such terms, conditions and payments

as the commission deems necessary and appropriate to ensure that the

proposed transaction will not be contrary to the public interest. Such

terms, conditions and payments:

(1) Must be fair and nondiscriminatory as between the eligible

customer and the remaining customers of the electric utility; and

(2) Must include, without limitation, payment by the eligible

customer to the electric utility of the eligible customer’s load-share

portion of any unrecovered balance in the deferred accounts of the

electric utility.

8. If the commission does not enter a final order on the application

of the eligible customer within 90 days after the date on which the

application was filed with the commission:

(a) The application shall be deemed to be approved by the

commission; and

(b) The eligible customer shall not begin purchasing energy, capacity

or ancillary services from the provider pursuant to the proposed

transaction sooner than 180 days after the date on which the application

was filed.

Sec. 21. 1. For eligible customers whose loads are in the service

territory of an electric utility that primarily serves densely populated

counties, the aggregate amount of energy that all such eligible

customers purchase from providers of new electric resources before July

1, 2003, must not exceed 50 percent of the difference between the

existing supply of energy generated in this state that is available to the

electric utility and the existing demand for energy in this state that is

consumed by the customers of the electric utility, as determined by the

commission.

2. An eligible customer that is a nongovernmental commercial or

industrial end-use customer whose load is in the service territory of an

electric utility that primarily serves densely populated counties shall not

purchase energy, capacity or ancillary services from a provider of new

electric resources unless, as part of the proposed transaction, the eligible

customer agrees to:

(a) Contract with the provider to purchase:

(1) An additional amount of energy which is equal to 10 percent of

the total amount of energy that the eligible customer is purchasing for

its own use under the proposed transaction and which is purchased at

the same price, terms and conditions as the energy purchased by the

eligible customer for its own use; and

(2) The capacity and ancillary services associated with the

additional amount of energy at the same price, terms and conditions as

the capacity and ancillary services purchased by the eligible customer

for its own use; and

(b) Offers to assign the rights to the contract to the electric utility for

use by the remaining customers of the electric utility.

3. If an eligible customer is subject to the provisions of subsection 2,

the eligible customer shall include with its application filed pursuant to

section 20 of this act all information concerning the contract offered to

the electric utility that is necessary for the commission to determine

whether it is in the best interest of the remaining customers of the

electric utility for the electric utility to accept the rights to the contract.

Such information must include, without limitation, the amount of the

energy

and capacity to be purchased under the contract, the price of the energy,

capacity and ancillary services and the duration of the contract.

4. Notwithstanding any specific statute to the contrary, information

concerning the price of the energy, capacity and ancillary services and

any other terms or conditions of the contract that the commission

determines are commercially sensitive:

(a) Must not be disclosed by the commission except to the regulatory

operations staff of the commission, the consumer’s advocate and his

staff and the electric utility for the purposes of carrying out the

provisions of this section; and

(b) Shall be deemed to be confidential for all other purposes, and the

commission shall take such actions as are necessary to protect the

confidentiality of such information.

5. If the commission determines that the contract:

(a) Is not in the best interest of the remaining customers of the electric

utility, the electric utility shall not accept the rights to the contract, and

the eligible customer is entitled to all rights to the contract.

(b) Is in the best interest of the remaining customers of the electric

utility, the electric utility shall accept the rights to the contract and the

eligible customer shall assign all rights to the contract to the electric

utility. A contract that is assigned to the electric utility pursuant to this

paragraph shall be deemed to be an approved part of the resource plan

of the electric utility and a prudent investment, and the electric utility

may recover all costs for the energy, capacity and ancillary services

acquired pursuant to the contract. To the extent practicable, the

commission shall take actions to ensure that the electric utility uses the

energy, capacity and ancillary services acquired pursuant to each such

contract only for the benefit of the remaining customers of the electric

utility that are not eligible customers, with a preference for the

remaining customers of the electric utility that are residential customers

with small loads.

6. The provisions of this section do not exempt the electric utility, in

whole or in part, from the requirements imposed on the electric utility

pursuant to sections 3 to 12, inclusive, of Senate Bill No. 372 of this

session to comply with its portfolio standard for renewable energy. The

commission shall not take any actions pursuant to this section that

conflict with or diminish those requirements.

7. As used in this section, “consumer’s advocate” means the

consumer’s advocate of the bureau of consumer protection in the office

of the attorney general.

Sec. 22. 1. If an eligible customer is purchasing energy, capacity

or ancillary services from a provider of new electric resources, the

eligible customer may, pursuant to tariffs approved by the commission,

replace some or all, but not less than all at a single time-of-use meter, of

the energy, capacity or ancillary services purchased from the provider of

new electric resources with energy, capacity or ancillary services

purchased from an electric utility.

2. The tariffs approved by the commission pursuant to this section

must include, without limitation:

(a) Provisions requiring the eligible customer to pay any incremental

costs that are incurred by the electric utility to provide energy to the

eligible customer;

(b) Provisions requiring the eligible customer to provide reasonable

and adequate notice to the electric utility;

customer must continue to purchase energy from the electric utility; and

(d) Any other provisions that the commission determines are

necessary and reasonable to carry out and enforce the provisions of this

section.

Sec. 23. 1. A provider of new electric resources shall not sell

energy, capacity or ancillary services to an eligible customer unless the

customer has a time-of-use meter installed at the point of delivery of

energy to the eligible customer.

2. An electric utility shall install a time-of-use meter at each point of

delivery of energy to the eligible customer if the eligible customer does

not have a time-of-use meter at that point of delivery. If the eligible

customer is:

(a) A nongovernmental commercial or industrial end-use customer,

the eligible customer or the provider shall pay all costs for the time-of

-use meter and for installation of the time-of-use meter by the electric

utility.

(b) A governmental entity, the provider shall pay all costs for the time

-of-use meter and for installation of the time-of-use meter by the electric

utility.

3. Not more than one person or entity may sell the energy that is

delivered to an eligible customer through any one time-of-use meter.

4. The provisions of this section do not prohibit:

(a) An eligible customer from having more than one time-of-use meter

installed for the same service location; or

(b) An eligible customer from installing any other meter or equipment

that is necessary or appropriate to the transaction with the provider, if

such a meter or equipment is otherwise consistent with system reliability.

Sec. 24. 1. An electric utility shall provide all transmission,

distribution, metering and other components of electric service that are

necessary for a provider of new electric resources to sell energy, capacity

and ancillary services to an eligible customer pursuant to the provisions

of this chapter. An electric utility shall provide each such component of

electric service pursuant to the tariffs and service agreements filed with

and approved by the appropriate regulatory authorities having

jurisdiction over each such component of electric service.

2. For each such component of electric service that is within the

jurisdiction of the commission, the commission shall establish just,

reasonable and nondiscriminatory rates.

3. The provisions of this chapter do not enlarge or expand any

existing rights under federal law or create any other rights with regard

to the transmission system of the electric utility.

4. When providing service pursuant to this chapter, an electric utility

is subject to all applicable statutes and regulations of this state and the

United States.

Sec. 25. Not later than 30 days after the end of each calendar

quarter, the commission shall submit to the legislative commission a

written report which summarizes for that calendar quarter:

1. Each application which was filed with the commission pursuant to

the provisions of this chapter and which requested approval of a

proposed transaction between an eligible customer and a provider of

new electric resources;

2. The information that the eligible customer included with the

application;

3. The findings of the commission concerning the effect of the

proposed transaction on the public interest; and

4. Whether the commission approved the application and, if so, the

effective date of the proposed transaction, the terms and conditions of

the proposed transaction, and the terms, conditions and payments

ordered by the commission.

Sec. 26. The commission shall adopt regulations to carry out and

enforce the provisions of this chapter.

Sec. 26.05 Title 58 of NRS is hereby amended by adding thereto a

new chapter to consist of the provisions set forth as sections 26.1 to 26.95,

inclusive, of this act.

Sec. 26.1. As used in this chapter, unless the context otherwise

requires, the words and terms defined in sections 26.15 to 26.6,

inclusive, of this act have the meanings ascribed to them in those

sections.

Sec. 26.15. “Calendar quarter” means each period of 3 consecutive

calendar months ending on March 31, June 30, September 30 and

December 31 in each calendar year.

Sec. 26.2. “Commission” means the public utilities commission of

Nevada.

Sec. 26.25. “Fund” means the fund for energy assistance and

conservation created by section 26.8 of this act.

Sec. 26.3. “Housing division” means the housing division of the

department of business and industry.

Sec. 26.35. “Municipal utility” includes, without limitation:

1. A utility established pursuant to chapter 709 or 710 of NRS.

2. Any other utility that is owned, operated or controlled by a county,

city or other local governmental entity.

Sec. 26.4. “Person” means:

1. A natural person;

2. Any form of business or social organization and any other

nongovernmental legal entity, including, without limitation, a

corporation, partnership, association, trust or unincorporated

organization;

3. A government or an agency or instrumentality of a government,

including, without limitation, this state or an agency or instrumentality

of this state; and

4. A political subdivision of this state or of any other government or

an agency or instrumentality of a political subdivision of this state or of

any other government.

Sec. 26.45. “Public utility” has the meaning ascribed to it in NRS

704.020 and 704.030.

Sec. 26.5. 1. “Retail customer” means an end-use customer that

purchases natural gas or electricity for consumption in this state.

2. The term includes, without limitation:

(a) A residential, commercial or industrial end-use customer that

purchases natural gas or electricity for consumption in this state,

including, without limitation, an eligible customer that purchases

electricity for consumption in this state from a provider of new electric

resources pursuant to the provisions of sections 3 to 26, inclusive, of this

act.

(b) A landlord of a mobile home park or owner of a company town

who is subject to any of the provisions of NRS 704.905 to 704.960,

inclusive.

through a master meter and who distributes or resells the natural gas or

electricity to one or more tenants for consumption in this state.

3. The term does not include this state, a political subdivision of this

state or an agency or instrumentality of this state or political subdivision

of this state when it is an end-use customer that purchases natural gas

or electricity for consumption in this state, including, without limitation,

when it is an eligible customer that purchases electricity for

consumption in this state from a provider of new electric resources

pursuant to the provisions of sections 3 to 26, inclusive, of this act.

Sec. 26.55. “Universal energy charge” means the charge imposed

pursuant to section 26.7 of this act.

Sec. 26.6. “Welfare division” means the welfare division of the

department of human resources.

Sec. 26.65. 1. The provisions of section 26.7 of this act do not

apply to any therm of natural gas or any kilowatt-hour of electricity that

a retail customer purchases from:

(a) A rural electric cooperative established pursuant to chapter 81 of

NRS.

(b) A general improvement district established pursuant to chapter

318 of NRS.

association or provider of service which is declared to be a public utility

pursuant to NRS 704.673 and which provides service only to its

members.

2. If a retail customer is exempted from paying the universal energy

charge pursuant to subsection 1, the retail customer may not receive

money or other assistance from:

(a) The welfare division pursuant to section 26.85 of this act for any

utility service for which the retail customer is exempted from paying the

universal energy charge; or

(b) The housing division pursuant to section 26.9 of this act.

Sec. 26.7. 1. Except as otherwise provided in this section and

section 26.65 of this act, each retail customer shall pay:

(a) A universal energy charge of 3.30 mills on each therm of natural

gas that the retail customer purchases from another person for

consumption in this state; and

(b) A universal energy charge of 0.39 mills on each kilowatt-hour of

electricity that the retail customer purchases from another person for

consumption in this state.

2. The provisions of subsection 1 do not apply to:

(a) Any therm of natural gas used as a source of energy to generate

electricity.

(b) Any kilowatt-hour of electricity used in industries utilizing

electrolytic-manufacturing processes.

3. If a retail customer uses the distribution services of a public utility

or municipal utility to acquire natural gas or electricity that is subject to

the universal energy charge, the public utility or municipal utility

providing the distribution services shall:

(a) Collect the universal energy charge from each such retail

customer;

(b) Ensure that the universal energy charge is set forth as a separate

item or entry on the bill of each such retail customer; and

remit to the commission the total amount of money collected by the

public utility or municipal utility for the universal energy charge for the

immediately preceding calendar quarter.

4. If a retail customer does not use the distribution services of a

public utility or municipal utility to acquire natural gas or electricity that

is subject to the universal energy charge, not later than 30 days after the

end of each calendar quarter, the retail customer shall remit to the

commission the total amount of money owed by the retail customer for

the universal energy charge for the immediately preceding calendar

quarter.

5. If, during a calendar quarter, a single retail customer or multiple

retail customers under common ownership and control pay, in the

aggregate, a universal energy charge of more than $25,000 for all

consumption of natural gas and electricity during the calendar quarter,

such retail customers are entitled to a refund, for that calendar quarter,

of the amount of the universal energy charge that exceeds $25,000. To

receive a refund pursuant to this section, not later than 90 days after the

end of the calendar quarter for which the refund is requested, such

retail customers must file with the commission a request for a refund. If

a request for a refund is filed with the commission:

(a) The commission shall determine and certify the amount of the

refund; and

(b) The refund must be paid as other claims against the state are paid

from money in the fund.

Sec. 26.75. 1. The commission shall adopt regulations to carry out

and enforce the provisions of section 26.7 of this act. Such regulations

may require public utilities, municipal utilities and retail customers that

are required to collect or remit money for the universal energy charge to

file reports and to provide the commission with information relating to

compliance with the requirements of the universal energy charge.

2. In carrying out the provisions of section 26.7 of this act, the

commission shall solicit advice from the consumer’s advocate of the

bureau of consumer protection in the office of the attorney general,

public utilities and municipal utilities and other knowledgeable persons.

3. The commission may conduct audits and investigations of public

utilities, municipal utilities and retail customers that are required to

collect or remit money for the universal energy charge, if the

commission determines that such audits and investigations are necessary

to verify compliance with the requirements of the universal energy

charge. In conducting such audits and investigations, the commission

may exercise any of the investigative powers granted to the commission

pursuant to chapter 703 of NRS, including, without limitation, the power

to issue orders to compel the appearance of witnesses and the production

of books, accounts, papers and records.

4. To carry out its powers and duties pursuant to this chapter, the

commission is entitled to an administrative charge of not more than 3

percent of the money collected for the universal energy charge. After

deduction of its administrative charge, the commission shall deposit the

remaining money collected for the universal energy charge in the state

treasury for credit to the fund.

5. The commission may bring an appropriate action in its own name

for recovery of any money that a person fails to pay, collect or remit in

violation of the requirements of the universal energy charge.

Sec. 26.8. 1. There is hereby created as a special revenue fund in

the state treasury the fund for energy assistance and conservation. The

welfare division shall administer the fund.

2. In addition to the money that must be credited to the fund from the

universal energy charge, all money received from private or public

sources to carry out the purposes of this chapter must be deposited in the

state treasury for credit to the fund.

3. The welfare division shall, to the extent practicable, ensure that

the money in the fund is administered in a manner which is coordinated

with all other sources of money that are available for energy assistance

and conservation, including, without limitation, money contributed from

private sources, money obtained from the Federal Government and

money obtained from any agency or instrumentality of this state or

political subdivision of this state.

4. The interest and income earned on the money in the fund, after

deducting any applicable charges, must be credited to the fund. All

claims against the fund must be paid as other claims against the state

are paid.

5. After deduction of any refunds paid from the fund pursuant to

section 26.7 of this act, the money in the fund must be distributed

pursuant to sections 26.85 and 26.9 of this act.

Sec. 26.85. 1. Seventy-five percent of the money in the fund must

be distributed to the welfare division for programs to assist eligible

households in paying for natural gas and electricity. The welfare

division may use not more than 3 percent of the money distributed to it

pursuant to this section for its administrative expenses.

2. Except as otherwise provided in section 26.65 of this act, after

deduction for its administrative expenses, the welfare division may use

the money distributed to it pursuant to this section only to:

(a) Assist eligible households in paying for natural gas and electricity.

(b) Carry out activities related to consumer outreach.

(d) Pay for the annual evaluations conducted pursuant to section

26.95 of this act.

3. Except as otherwise provided in subsection 4, to be eligible to

receive assistance from the welfare division pursuant to this section, a

household must have a household income that is not more than 150

percent of the federally designated level signifying poverty, as

determined by the welfare division.

4. The welfare division is authorized to render emergency assistance

to a household if an emergency related to the cost or availability of

natural gas or electricity threatens the health or safety of one or more of

the members of the household. Such emergency assistance may be

rendered upon the good faith belief that the household is otherwise

eligible to receive assistance pursuant to this section.

5. Before July 1, 2002, if a household is eligible to receive assistance

pursuant to this section, the welfare division shall determine the amount

of assistance that the household will receive by using the existing

formulas set forth in the state plan for low-income home energy

assistance.

6. On or after July 1, 2002, if a household is eligible to receive

assistance pursuant to this section, the welfare division:

(a) Shall, to the extent practicable, determine the amount of assistance

that the household will receive by determining the amount of assistance

that is sufficient to reduce the percentage of the household’s income that

is spent on natural gas and electricity to the median percentage of

household income spent on natural gas and electricity statewide.

(b) May adjust the amount of assistance that the household will

receive based upon such factors as:

(1) The income of the household;

(2) The size of the household;

(3) The type of energy that the household uses; and

(4) Any other factor which, in the determination of the welfare

division, may make the household particularly vulnerable to increases in

the cost of natural gas or electricity.

7. The welfare division shall adopt regulations to carry out and

enforce the provisions of this section and section 26.8 of this act.

8. In carrying out the provisions of this section, the welfare division

shall:

(a) Solicit advice from the housing division and from other

knowledgeable persons;

(b) Identify and implement appropriate delivery systems to distribute

money from the fund and to provide other assistance pursuant to this

section;

energy assistance or conservation services to low-income persons and, to

the extent allowed by federal law and to the extent practicable, use the

same simplified application forms as those other agencies;

(d) Establish a process for evaluating the programs conducted

pursuant to this section;

(e) Develop a process for making changes to such programs; and

(f) Engage in annual planning and evaluation processes with the

housing division as required by section 26.95 of this act.

Sec. 26.9. 1. Twenty-five percent of the money in the fund must be

distributed to the housing division for programs of energy conservation,

weatherization and energy efficiency for eligible households. The

housing division may use not more than 6 percent of the money

distributed to it pursuant to this section for its administrative expenses.

2. Except as otherwise provided in section 26.65 of this act, after

deduction for its administrative expenses, the housing division may use

the money distributed to it pursuant to this section only to:

(a) Provide an eligible household with services of basic home energy

conservation and home energy efficiency or to assist an eligible

household to acquire such services, including, without limitation,

services of load management.

(b) Pay for appropriate improvements associated with energy

conservation, weatherization and energy efficiency.

(d) Pay for program design.

(e) Pay for the annual evaluations conducted pursuant to section

26.95 of this act.

3. Except as otherwise provided in subsection 4, to be eligible to

receive assistance from the housing division pursuant to this section, a

household must have a household income that is not more than 150

percent of the federally designated level signifying poverty, as

determined by the housing division.

4. The housing division is authorized to render emergency assistance

to a household if the health or safety of one or more of the members of

the household is threatened because of the structural, mechanical or

other failure of:

(a) The unit of housing in which the household dwells; or

(b) A component or system of the unit of housing in which the

household dwells.

Such emergency assistance may be rendered upon the good faith belief

that the household is otherwise eligible to receive assistance pursuant to

this section.

5. The housing division shall adopt regulations to carry out and

enforce the provisions of this section.

6. In carrying out the provisions of this section, the housing division

shall:

(a) Solicit advice from the welfare division and from other

knowledgeable persons;

(b) Identify and implement appropriate delivery systems to distribute

money from the fund and to provide other assistance pursuant to this

section;

energy assistance or conservation services to low-income persons and, to

the extent allowed by federal law and to the extent practicable, use the

same simplified application forms as those other agencies;

(d) Encourage other persons to provide resources and services,

including, to the extent practicable, schools and programs that provide

training in the building trades and apprenticeship programs;

(e) Establish a process for evaluating the programs conducted

pursuant to this section;

(f) Develop a process for making changes to such programs; and

(g) Engage in annual planning and evaluation processes with the

welfare division as required by section 26.95 of this act.

Sec. 26.95. 1. The welfare division and the housing division jointly

shall establish an annual plan to coordinate their activities and

programs pursuant to this chapter. In preparing the annual plan, the

divisions shall solicit advice from knowledgeable persons. The annual

plan must include, without limitation, a description of:

(a) The resources and services being used by each program and the

efforts that will be undertaken to increase or improve those resources

and services;

(b) The efforts that will be undertaken to improve administrative

efficiency;

federal, state and local agencies, nonprofit organizations and any

private business or trade organizations that provide energy assistance or

conservation services to low-income persons;

(d) The measures concerning program design that will be undertaken

to improve program effectiveness; and

(e) The efforts that will be taken to address issues identified during the

most recently completed annual evaluation conducted pursuant to

subsection 2.

2. The welfare division and the housing division jointly shall:

(a) Conduct an annual evaluation of the programs that each division

carries out pursuant to sections 26.85 and 26.9 of this act;

(b) Solicit advice from the commission as part of the annual

evaluation; and

report to the governor, the legislative commission and the interim

finance committee.

3. The report prepared pursuant to subsection 2 must include,

without limitation:

(a) A description of the objectives of each program;

(b) An analysis of the effectiveness and efficiency of each program in

meeting the objectives of the program;

and a detailed description of the use of that money for each program;

(d) An analysis of the coordination between the divisions concerning

each program; and

(e) Any changes planned for each program.

Sec. 27. Chapter 703 of NRS is hereby amended by adding thereto a

new section to read as follows:

1. In any contested case pending before the commission, the

regulatory operations staff of the commission may, without filing a

petition for leave to intervene:

(a) Appear and participate in the contested case as an independent

party; and

(b) Be represented by legal counsel in the contested case.

2. A commissioner may not discuss with a member of the regulatory

operations staff of the commission any substantive issues of fact or law

concerning a contested case pending before the commission except upon

notice to all parties to the contested case and an opportunity for all such

parties to participate.

3. As used in this section, “contested case” has the meaning ascribed

to it in NRS 233B.032.

Sec. 28. NRS 703.030 is hereby amended to read as follows:

703.030 1. The commission consists of [three] five commissioners

appointed by the governor . [for terms of] After the initial terms, the term

of each commissioner is 4 years.

2. The governor shall appoint [as members of the commission

persons] :

(a) One commissioner to represent the general public.

(b) Four commissioners who have at least 2 years of experience in one

or more of the following fields:

[(a)] (1) Accounting.

[(b)] (2) Business administration.

[(c)] (3) Finance or economics.

[(d)] (4) Administrative law.

[(e)] (5) Professional engineering.

Not more than two of the commissioners appointed pursuant to this

paragraph may be from the same field of experience.

3. Not more than [two] three of the commissioners may be [:

(a) Members] members of the same political party.

[(b) From the same field of experience.]

4. A vacancy on the commission must be filled for the remainder of

the unexpired term in the same manner as the original appointment.

Sec. 29. NRS 703.110 is hereby amended to read as follows:

703.110 1. [The] Except as otherwise provided in subsection 2, a

majority of the commissioners [have] has full power to act in all matters

within [their jurisdiction.] the jurisdiction of the commission and shall

exercise all the powers of the commission.

2. If [two] a majority of the commissioners are disqualified or if there

are [two] vacancies within the [commission,] offices of a majority of the

commissioners, the remaining commissioners or, if only one

commissioner is remaining, the remaining commissioner [or] has full

power to act in all matters within the jurisdiction of the commission and

shall exercise all the powers of the commission.

3. Except as otherwise provided in this chapter, all hearings and

meetings conducted by the commission must be open to the public.

Sec. 30. NRS 703.130 is hereby amended to read as follows:

703.130 1. The commission shall appoint a deputy commissioner

who shall serve in the unclassified service of the state.

2. The commission shall appoint a secretary who shall perform such

administrative and other duties as are prescribed by the commission. The

commission shall also appoint an assistant secretary.

3. The commission may employ such other clerks, experts or engineers

as may be necessary.

4. Except as otherwise provided in subsection 5, the commission:

(a) May appoint one or more hearing officers for a period specified by

the commission to conduct proceedings or hearings that may be conducted

by the commission pursuant to chapters 704, 704A, 705, 708 and 711 of

NRS [.] and sections 3 to 26, inclusive, and sections 26.7 and 26.75 of

this act.

(b) Shall prescribe by regulation the procedure for appealing a decision

of a hearing officer to the commission.

5. The commission shall not appoint a hearing officer to conduct

proceedings or hearings :

(a) In any matter pending before the commission pursuant to sections

8 to 18, inclusive, of [this act.] Assembly Bill No. 369 of this session; or

(b) In any matter pending before the commission pursuant to NRS

704.070 to 704.110, inclusive, and sections 41 to 46, inclusive, of this act

in which an electric utility has filed a general rate application or an

application to clear its deferred accounts.

6. As used in this section, “electric utility” has the meaning ascribed

to it in section 19 of Assembly Bill No. 369 of this session.

Sec. 30.5. NRS 703.147 is hereby amended to read as follows:

703.147 1. The public utilities commission regulatory fund is hereby

created as a special revenue fund. Except as otherwise provided in section

12 of Senate Bill No. 372 of this [act,] session and section 26.75 of this

act, all money collected by the commission pursuant to law must be

deposited in the state treasury for credit to the fund. Money collected for

the use of the consumer’s advocate of the bureau of consumer protection

in the office of the attorney general must be transferred pursuant to the

provisions of subsection 8 of NRS 704.035.

2. Money in the fund which belongs to the commission may be used

only to defray the costs of:

(a) Maintaining staff and equipment to regulate adequately public

utilities and other persons subject to the jurisdiction of the commission.

(b) Participating in all rate cases involving those persons.

and retaining consultants connected with that regulation and participation.

(d) The salaries, travel expenses and subsistence allowances of the

members of the commission.

3. All claims against the fund must be paid as other claims against the

state are paid.

4. The commission must furnish upon request a statement showing the

balance remaining in the fund as of the close of the preceding fiscal year.

Sec. 31. NRS 703.164 is hereby amended to read as follows:

703.164 1. The commission may employ, or retain on a contract

basis, legal counsel who shall:

(a) Except as otherwise provided in subsection 2, be counsel and

attorney for the commission in all actions, proceedings and hearings.

(b) Prosecute in the name of the [public utilities commission of Nevada]

commission all civil actions for the enforcement of chapters 704, 704A,

705 and 708 of NRS and sections 3 to 26, inclusive, and sections 26.7

and 26.75 of this act and for the recovery of any penalty or forfeiture

provided for therein.

the enforcement of chapters 704, 704A, 705 and 708 of NRS [.] and

sections 3 to 26, inclusive, and sections 26.7 and 26.75 of this act.

2. Each district attorney shall:

(a) Prosecute any violation of chapter 704, 704A, 705, 708 or 711 of

NRS for which a criminal penalty is provided and which occurs in his

county.

(b) Aid in any investigation, prosecution, hearing or trial held under the

provisions of chapter 704, 704A, 705, 708 or 711 of NRS and, at the

request of the commission or its legal counsel, act as counsel and attorney

for the commission.

3. The attorney general shall, if the district attorney fails or refuses to

do so, prosecute all violations of the laws of this state by public utilities

under the jurisdiction of the commission and their officers, agents and

employees.

4. The attorney general is not precluded from appearing in or moving

to intervene in any action and representing the interest of the State of

Nevada in any action in which the commission is a party and is

represented by independent counsel.

Sec. 32. NRS 703.196 is hereby amended to read as follows:

703.196 1. Any books, accounts, records, minutes, papers and

property of any public utility that are subject to examination pursuant to

NRS 703.190 or 703.195 and are made available to the commission, any

officer or employee of the commission, the bureau of consumer protection

in the office of the attorney general or any other person under the

condition that the disclosure of such information to the public be withheld

or otherwise limited, must not be disclosed to the public unless the

commission first determines that the disclosure is justified.

2. The commission shall take such actions as are necessary to protect

the confidentiality of such information, including, without limitation:

(a) Granting such protective orders as it deems necessary; and

(b) Holding closed hearings to receive or examine such information.

3. If the commission closes a hearing to receive or examine such

information, it shall:

(a) Restrict access to the records and transcripts of such hearings

without the prior approval of the commission or an order of a court of

competent jurisdiction authorizing access to the records or transcripts; and

(b) Prohibit any participant at such a hearing from disclosing such

information without the prior authorization of the commission.

4. A representative of the regulatory operations staff of the

commission and the bureau of consumer protection:

(a) May attend any closed hearing held pursuant to this section; and

(b) Have access to any records or other information determined to be

confidential pursuant to this section.

5. The commission shall consider in an open meeting whether the

information reviewed or examined in a closed hearing may be disclosed

without revealing the confidential subject matter of the information. To the

extent the commission determines the information may be disclosed, the

information must become a part of the records available to the public.

Information which the commission determines may not be disclosed must

be kept under seal.

Sec. 32.5. NRS 703.197 is hereby amended to read as follows:

703.197 1. The commission may collect fees for the filing of any

official document required by this chapter and chapters 704, 704A, 705

and 708 of NRS and sections 3 to 26, inclusive, of this act or by a

regulation of the commission.

2. Filing fees may not exceed:

(a) For applications, $200.

(b) For petitions seeking affirmative relief, $200.

to an application, $10. If more than one page is filed at one time, the total

fee may not exceed the cost of notice and publication.

(d) For all other documents which require public notice, $10.

3. If an application or other document is rejected by the commission

because it is inadequate or inappropriate, the filing fee must be returned.

4. The commission may not charge any fee for filing [a] :

(a) A complaint.

(b) A request for a refund pursuant to section 26.7 of this act.

Sec. 33. NRS 703.320 is hereby amended to read as follows:

703.320 1. In any matter pending before the commission, if a hearing

is required by a specific statute or is otherwise required by the

commission, the commission shall give notice of the pendency of the

matter to all persons entitled to notice of the hearing. The commission

shall by regulation specify:

(a) The manner of giving notice in each type of proceeding; and

(b) The persons entitled to notice in each type of proceeding.

2. The commission shall not dispense with a hearing [in] :

(a) In any matter pending before the commission pursuant to sections 8

to 18, inclusive, of [this act.] Assembly Bill No. 369 of this session; or

(b) Except as otherwise provided in subsection 4 of NRS 704.100, in

any matter pending before the commission pursuant to NRS 704.070 to

704.110, inclusive, and sections 41 to 46, inclusive, of this act in which

an electric utility has filed a general rate application or an application to

clear its deferred accounts.

3. In any other matter pending before the commission, the commission

may dispense with a hearing and act upon the matter pending unless,

within 10 days after the date of the notice of pendency, a person entitled to

notice of the hearing files with the commission a request that the hearing

be held. If such a request for a hearing is filed, the commission shall give at

least 10 days’ notice of the hearing.

4. As used in this section, “electric utility” has the meaning ascribed

to it in section 19 of Assembly Bill No. 369 of this session.

Sec. 34. NRS 703.330 is hereby amended to read as follows:

703.330 1. A complete record must be kept of all hearings before the

commission . [, and all] All testimony at such hearings must be taken

down by the stenographer appointed by the commission, or, under the

direction of any competent person appointed by the commission, must be

reported by sound recording equipment in the manner authorized for

reporting testimony in district courts. The testimony reported by a

stenographer must be transcribed, and the transcript filed with the record

in the matter. The commission may by regulation provide for the

transcription or safekeeping of sound recordings. Cost of recording and

transcribing testimony at any hearing, except those hearings ordered

pursuant to NRS 703.310 , must be paid by the applicant. If a complaint is

made pursuant to NRS 703.310 by a customer or by a political subdivision

of the state or municipal organization, the complainant is not liable for any

costs. Otherwise, if there are several applicants or parties to any hearing,

the commission may apportion the costs among them in its discretion.

2. [Whenever any complaint] If a petition is served upon the

commission as provided in NRS 703.373 for the bringing of an action

against the commission, before the action is reached for trial, the

commission shall file a certified copy of all proceedings and testimony

taken with the clerk of the court in which the action is pending.

3. A copy of the proceedings and testimony must be furnished to any

party, on payment of a reasonable amount, to be fixed by the commission,

and the amount must be the same for all parties.

4. The provisions of this section do not prohibit the commission from

[restricting] :

(a) Restricting access to the records and transcripts of a hearing

pursuant to paragraph (a) of subsection 3 of NRS 703.196.

(b) Protecting the confidentiality of information pursuant to section

20 or 21 of this act.

Sec. 35. NRS 703.374 is hereby amended to read as follows:

703.374 1. A court of competent jurisdiction, after hearing, may

issue an injunction suspending or staying any final order of the

commission if:

(a) The applicant has filed a motion for a preliminary injunction;

(b) The applicant has served the motion on the commission and other

interested parties within 20 days after the rendition of the order on which

the complaint is based;

will prevail on the merits of the matter and will suffer irreparable injury if

injunctive relief is not granted; and

(d) The applicant files a bond or other undertaking to secure the adverse

parties in such manner as the court finds sufficient.

2. The decision of the commission on each matter considered shall be

deemed reasonable and just until set aside by the court . [, and in] In all

actions for an injunction or [otherwise] for any other relief, the burden of

proof is upon the party attacking or resisting the order of the commission to

show by clear and satisfactory evidence that the order is unlawful [,] or

unreasonable . [, as the case may be.]

3. If an injunction is granted by the court and the order complained of

is one which [permanently suspends] :

(a) Disapproves a public utility’s proposed changes in a schedule of

rates [and charges or a] , or any part thereof , [filed by any public utility]

pursuant to NRS 704.070 to 704.110, inclusive, [or which otherwise] and

sections 41 to 46, inclusive, of this act; or

(b) Otherwise prevents the proposed changes in the schedule , or any

part thereof , from taking effect,

the public utility complaining may [keep in effect or put] place into

effect [, as the case may be, the suspended] the proposed changes in the

schedule , or any part thereof , pending final determination by the court

having jurisdiction, by filing a bond with the court in such an amount as

the court may fix, conditioned upon the refund to persons entitled to the

excess amount if the [rate or rates so suspended] proposed changes in the

schedule, or any part thereof, are finally determined by the court to be

excessive.

Sec. 36. NRS 703.377 is hereby amended to read as follows:

703.377 1. [No] Any certificate of public convenience and necessity,

permit or license issued or transferred in accordance with the [terms]

provisions of NRS [704.005] 704.001 to 704.751, inclusive, is [either] not

a franchise or irrevocable.

2. Upon receipt of a written complaint or on its own motion, the

commission may, after investigation and hearing, revoke any certificate,

permit or license, [but as to] except that the commission may not revoke

the certificate of a public utility [only if] unless the commission has

arranged for another public utility to provide the service for which the

certificate was granted.

3. [The proceedings thereafter are governed by] If the commission

revokes any certificate, permit or license, the person who held the

certificate, permit or license may seek judicial review pursuant to the

provisions of NRS 703.373 to 703.376, inclusive.

Sec. 37. Chapter 704 of NRS is hereby amended by adding thereto the

provisions set forth as sections 38 to 46, inclusive, of this act.

Sec. 38. “Biomass” means any organic matter that is available on a

renewable basis, including, without limitation:

1. Agricultural crops and agricultural wastes and residues;

2. Wood and wood wastes and residues;

3. Animal wastes;

4. Municipal wastes; and

5. Aquatic plants.

Sec. 39. “Consumer’s advocate” means the consumer’s advocate of

the bureau of consumer protection in the office of the attorney general.

Sec. 40. “Renewable energy” has the meaning ascribed to it in

section 7 of Senate Bill No. 372 of this session.

Sec. 40.5. 1. For the purposes of protecting the health of

residential customers who receive gas, water or electricity from public

utilities, the commission shall adopt or amend regulations that:

(a) Establish the criteria that will be used to determine when a public

utility is required to postpone its termination of utility service to the

residence of a residential customer who has failed to pay for such

service. Such criteria may be based in part upon the residential

customer’s ability to pay.

(b) Require a public utility to postpone its termination of utility service

to the residence of a residential customer who has failed to pay for such

service if the residential customer satisfies the criteria established by the

commission and termination of the utility service is reasonably likely to

threaten the health of an occupant of the residence of the residential

customer.

2. In addition to the regulations adopted pursuant to subsection 1,

for the purposes of regulating public utilities that provide gas, water or

electricity to landlords who pay for the utility service and who distribute

or resell the gas, water or electricity to one or more residential tenants,

the commission shall adopt or amend regulations to require a public

utility to use its best efforts to post, in a conspicuous location, notice of

the intent of the public utility to terminate utility service because the

landlord has failed to pay for such service. Such notice must provide

sufficient information to allow residential tenants or their occupants to

contact the public utility if termination of the utility service is reasonably

likely to threaten the health of an occupant of the residence of a

residential tenant.

3. A public utility shall not terminate utility service for gas, water or

electricity without complying with the regulations adopted by the

commission pursuant to this section.

4. As used in this section:

(a) “Gas” includes, without limitation, liquefied petroleum gas and

natural gas.

(b) “Landlord” means a landlord who is subject, in whole or in part,

to the provisions of chapter 118A or 118B of NRS.

Sec. 41. As used in NRS 704.070 to 704.110, inclusive, and sections

41 to 46, inclusive, of this act, unless the context otherwise requires, the

words and terms defined in sections 42, 43 and 44 of this act have the

meanings ascribed to them in those sections.

Sec. 42. “Application to make changes in any schedule” and

“application” include, without limitation:

1. A general rate application;

2. An application to recover the increased cost of purchased fuel,

purchased power, or natural gas purchased for resale; and

3. An application to clear deferred accounts.

Sec. 43. “Rate” means any individual or joint rate, toll or charge

imposed by a public utility for a service performed or product furnished

by the public utility.

Sec. 44. “Schedule” means any schedule that establishes or

otherwise sets the rates for a public utility and any individual or joint

rule, regulation, practice, classification or measurement that in any

manner affects those rates.

Sec. 45. For the purposes of NRS 704.070 to 704.110, inclusive, and

sections 41 to 46, inclusive, of this act, a public utility shall be deemed to

make changes in a schedule if the public utility implements a new

schedule or amends an existing schedule.

Sec. 46. 1. The commission shall conduct a consumer session to

solicit comments from the public in any matter pending before the

commission pursuant to NRS 704.070 to 704.110, inclusive, and sections

41 to 46, inclusive, of this act in which:

(a) A public utility has filed a general rate application, an application

to recover the increased cost of purchased fuel, purchased power, or

natural gas purchased for resale or an application to clear its deferred

accounts; and

(b) The changes proposed in the application will result in an increase

in annual gross operating revenue, as certified by the applicant, in an

amount that will exceed $50,000 or 10 percent of the applicant’s annual

gross operating revenue, whichever is less.

2. In addition to the case-specific consumer sessions required by

subsection 1, the commission shall, during each calendar year, conduct

at least one general consumer session in the county with the largest

population in this state and at least one general consumer session in the

county with the second largest population in this state. At each general

consumer session, the commission shall solicit comments from the

public on issues concerning public utilities. Not later than 60 days after

each general consumer session, the commission shall submit the record

from the general consumer session to the legislative commission.

Sec. 47. NRS 704.005 is hereby amended to read as follows:

704.005 As used in this chapter, unless the context otherwise requires,

the words and terms defined in NRS 704.010 to 704.030, inclusive, and

sections 38 and 39 of this act have the meanings ascribed to them in those

sections.

Sec. 48. NRS 704.033 is hereby amended to read as follows:

704.033 1. The commission shall levy and collect an annual

assessment from all public utilities subject to the jurisdiction of the

commission.

2. Except as otherwise provided in subsection 3, the annual assessment

must be:

(a) For the use of the commission, not more than 3.50 mills; and

(b) For the use of the consumer’s advocate , [of the bureau of consumer

protection in the office of the attorney general,] not more than

0.75 mills,

on each dollar of gross operating revenue derived from the intrastate

operations of such utilities in the State of Nevada, except that the

minimum assessment in any 1 year must be $10. The total annual

assessment must be not more than 4.25 mills.

3. For railroads the total annual assessment must be the amount levied

for the use of the commission pursuant to paragraph (a) of subsection 2.

The levy for the use of the consumer’s advocate must not be assessed

against railroads.

4. The gross operating revenue of the utilities must be determined for

the preceding calendar year. In the case of:

(a) Telephone utilities, except as otherwise provided in paragraph (c),

the revenue shall be deemed to be all intrastate revenues that are

considered by the commission for the purpose of establishing rates.

(b) Railroads, the revenue shall be deemed to be the revenue received

only from freight and passenger intrastate movements.

commodity, energy or service furnished to another public utility for resale.

Sec. 49. NRS 704.035 is hereby amended to read as follows:

704.035 1. On or before June 1 of each year, the commission shall

mail revenue report forms to all public utilities under its jurisdiction, to the

address of those utilities on file with the commission. The revenue report

form serves as notice of the commission’s intent to assess the utilities, but

failure to notify any utility does not invalidate the assessment with respect

thereto.

2. Each public utility subject to the provisions of NRS 704.033 shall

complete the revenue report referred to in subsection 1, compute the

assessment and return the completed revenue report to the commission

accompanied by payment of the assessment and any penalty due, pursuant

to the provisions of subsection 5.

3. The assessment is due on July 1 of each year, but may, at the option

of the public utility, be paid quarterly on July 1, October 1, January 1 and

April 1.

4. The assessment computed by the utility is subject to review and

audit by the commission, and the amount of the assessment may be

adjusted by the commission as a result of the audit and review.

5. Any public utility failing to pay the assessment provided for in NRS

704.033 on or before August 1, or if paying quarterly, on or before

August 1, October 1, January 1 or April 1, shall pay, in addition to such

assessment, a penalty of 1 percent of the total unpaid balance for each

month or portion thereof that the assessment is delinquent, or $10,

whichever is greater, but no penalty may exceed $1,000 for each

delinquent payment.

6. When a public utility sells, transfers or conveys substantially all of

its assets or certificate of public convenience and necessity, the

commission shall determine, levy and collect the accrued assessment for

the current year not later than 30 days after the sale, transfer or

conveyance, unless the transferee has assumed liability for the assessment.

For purposes of this subsection the jurisdiction of the commission over the

selling, transferring or conveying public utility continues until it has paid

the assessment.

7. The commission may bring an appropriate action in its own name

for the collection of any assessment and penalty which is not paid as

provided in this section.

8. The commission shall, on a quarterly basis, transfer to the account

for the consumer’s advocate [of the bureau of consumer protection in the

office of the attorney general] that portion of the assessments collected

which belongs to the consumer’s advocate.

Sec. 50. NRS 704.070 is hereby amended to read as follows:

704.070 Unless exempt under the provisions of NRS 704.075 ,

704.095 or 704.097:

1. [Every] Each public utility shall file with the commission, within a

time to be fixed by the commission, a copy of all schedules [which] that

are currently in force for the public utility. Such schedules must be open

to public inspection . [, showing all rates, tolls and charges which it has

established and which are in force at the time for any service performed or

product furnished in connection therewith by any public utility controlled

and operated by it.

2. All rules or regulations that in any manner affect the rates charged

or to be charged for any service or product must be filed with that

schedule.]

2. A copy of each schedule that is currently in force for the public

utility, or so much of the schedule as the commission deems necessary

for inspection by the public, must be:

(a) Printed in plain type and posted in each office of the public utility

where payments are made to the public utility by its customers; and

(b) Open to inspection by the public and in such form and place as to

be readily accessible to and conveniently inspected by the public.

Sec. 51. NRS 704.075 is hereby amended to read as follows:

704.075 1. As used in this section, with respect to the sale of natural

gas:

(a) “Generating customer” means a customer who generates electricity

by burning natural gas.

(b) “Industrial customer” means a customer engaged primarily in

manufacturing or processing which changes raw or unfinished materials

into another form or creates another product.

requirements equal or exceed [50 thousand] 50,000 cubic feet of natural

gas per day on any day and which is an institution, an agency of federal,

state or local government, or engaged primarily in renting out offices or

other commercial space, in providing lodging or in the sale of other goods

or services.

2. The commission shall establish standards for the setting, increase or

decrease of rates [and charges] for natural gas to generating, industrial and

large commercial customers. These standards must authorize increases or

decreases on less than 30 days’ notice. Establishing different classes of

customers, and charging different rates to customers of the same class, for

these customers do not violate this chapter.

3. The commission may, for sales to generating, industrial and large

commercial customers:

(a) Exempt the [filing of] rates for natural gas from those provisions of

NRS [704.080, 704.090,] 704.070, 704.100 and 704.110 [which it] that

the commission determines are not needed to protect the public interest.

(b) Authorize the establishment of different classes of customer or the

charging of different rates for customers of the same class, based on value

of the service and on the customer’s ability to change from one fuel to

another.

Sec. 52. NRS 704.100 is hereby amended to read as follows:

704.100 Except as otherwise provided in NRS 704.075 or as may

otherwise be provided by the commission pursuant to NRS 704.095 [,

704.097 or 704.275:

1. No changes may be made] or 704.097:

1. A public utility shall not make changes in any schedule, [including

schedules of joint rates, or in the rules or regulations affecting any rates or

charges, except upon 30 days’ notice to the commission, and all changes

must be plainly indicated, or by filing new schedules in lieu thereof 30

days before the time the schedules are to take effect. The commission,

upon application of any public utility, may prescribe a shorter time within

which a reduction may be made.

2. Copies] unless the public utility:

(a) Files with the commission an application to make the proposed

changes and the commission approves the proposed changes pursuant to

NRS 704.110; or

(b) Files the proposed changes with the commission using a letter of

advice in accordance with the provisions of subsection 4.

2. A public utility shall post copies of all proposed[,] schedules and

all new or amended schedules [must be filed and posted in the offices of

public utilities as required for original schedules.] in the same offices and

in substantially the same form, manner and places as required by NRS

704.070 for the posting of copies of schedules that are currently in force.

3. A public utility may not set forth as justification for a rate increase

any items of expense or rate base [which] that previously have been

considered and disallowed by the commission, [only if] unless those items

are clearly identified in the application and new facts or considerations of

policy for each item are advanced in the application to justify a reversal of

the [commission’s] prior decision[.

4. The commission shall determine whether a hearing must be held

when] of the commission.

4. Except as otherwise provided in subsection 5, if the proposed

change in any schedule [stating a new or revised individual or joint rate,

fare or charge, or any new or revised individual or joint regulation or

practice affecting any rate, fare or charge,] does not change any rate or

will result in an increase in annual gross operating revenue , as certified

by the [applicant of $2,500 or less.] public utility, in an amount that does

not exceed $2,500:

(a) The public utility may file the proposed change with the

commission using a letter of advice in lieu of filing an application; and

(b) The commission shall determine whether it should dispense with a

hearing regarding the proposed change.

5. If the applicant is a public utility furnishing telephone service and

the proposed change in any schedule will result in an increase in annual

gross operating revenue, as certified by the applicant, in an amount that

does not exceed $50,000 or 10 percent of the applicant’s annual gross

operating revenue, whichever is less, the commission shall determine

whether it should dispense with a hearing regarding the proposed

change.

6. In making the determination pursuant to subsection 4 or 5, the

commission shall first consider all timely written protests, any

presentation that the regulatory operations staff of the commission may

desire to present, the application of the public utility and any other matters

deemed relevant by the commission.

Sec. 53. NRS 704.110 is hereby amended to read as follows:

704.110 Except as otherwise provided in NRS 704.075 or as may

otherwise be provided by the commission pursuant to NRS 704.095 or

704.097:

1. [Whenever there is filed] If a public utility files with the

commission an application to make changes in any schedule [stating a

new or revised individual or joint rate or charge, or any new or revised

individual or joint regulation or practice affecting any rate or charge, or

any schedule resulting] , including, without limitation, changes that will

result in a discontinuance, modification or restriction of service, the

commission [may, upon complaint or upon its own motion without

complaint, at once, without answer or formal pleading by the interested

utility, investigate or, upon reasonable notice, conduct a hearing

concerning] shall investigate the propriety of the [rate, charge,

classification, regulation, discontinuance, modification, restriction or

practice.

2. Pending the investigation or hearing and the decision thereon, the

commission, upon delivering to the utility affected thereby a statement in

writing of its reasons for the suspension, may suspend the operation of the

schedule and defer the use of the rate, charge, classification, regulation,

discontinuance, modification, restriction or practice. If the rate, charge,

classification, regulation, discontinuance, modification, restriction or

practice is part of:

(a) A filing made pursuant to subsection 7, the suspension must not be

effective for more than 90 days beyond the time when the rate, charge,

classification, regulation, discontinuance, modification, restriction or

practice would otherwise go into effect.

(b) Any other filing made pursuant to this section, the suspension must

not be effective for more than 150 days beyond the time when the rate,

charge, classification, regulation, discontinuance, modification, restriction

or practice would otherwise go into effect.

3. Whenever there is filed] proposed changes to determine whether to

approve or disapprove the proposed changes. If an electric utility files

such an application and the application is a general rate application or

an application to clear its deferred accounts, the consumer’s advocate

shall be deemed a party of record.

2. Except as otherwise provided in subsection 3, if a public utility

files with the commission an application to make changes in any

schedule, not later than 180 days after the date on which the application

is filed, the commission shall issue a written order approving or

disapproving, in whole or in part, the proposed changes.

3. If a public utility files with the commission [any schedule stating an

increased individual or joint rate or charge for service or equipment,] a

general rate application, the public utility shall submit with its application

a statement showing the recorded results of revenues, expenses,

investments and costs of capital for its most recent 12 months for which

data were available when the application was prepared. [During any

hearing concerning the increased rates or charges determined by the

commission to be necessary,] In determining whether to approve or

disapprove any increased rates, the commission shall consider evidence

support of the increased rates [or charges] based upon actual recorded

results of operations for the same 12 months, adjusted for increased

revenues, any increased investment in facilities, increased expenses for

depreciation, certain other operating expenses as approved by the

commission and changes in the costs of securities which are known and

are measurable with reasonable accuracy at the time of filing and which

will become effective within 6 months after the last month of those 12

months, but [no new rates or charges may be placed] the public utility

shall not place into effect any increased rates until the changes have been

experienced and certified by the public utility to the commission [.] and

the commission has approved the increased rates. The commission shall

also consider evidence supporting expenses for depreciation, calculated on

an annual basis, applicable to major components of the public utility’s

plant placed into service during the recorded test period or the period for

certification as set forth in the application. Adjustments to revenues,

operating expenses and costs of securities must be calculated on an annual

basis. Within 90 days after the [filing with the commission of] date on

which the certification required [in] by this subsection [, or before the

expiration of any period of suspension ordered pursuant to subsection 2,]

is filed with the commission, or within 180 days after the date on which

the general rate application is filed with the commission, whichever time

is longer, the commission shall make such order in reference to [those

rates or charges] the increased rates as is required by this chapter. An

electric utility shall file a general rate application pursuant to this

subsection at least once every 24 months.

4. [After full investigation or hearing, whether completed before or

after the date upon which the rate, charge, classification, regulation,

discontinuance, modification, restriction or practice is to go into effect, the

commission may make such order in reference to the rate, charge,

classification, regulation, discontinuance, modification, restriction or

practice as would be proper in a proceeding initiated after the rate, charge,

classification, regulation, discontinuance, modification, restriction or

practice has become effective.

5. Except as otherwise provided in subsection 6, whenever] If a public

utility files with the commission an application to make changes in any

schedule and the commission does not issue a final written order

regarding the proposed changes within the time required by this section,

the proposed changes shall be deemed to be approved by the

commission.

5. If a public utility files with the commission a general rate

application [for an increased rate or charge for, or classification,

regulation, discontinuance, modification, restriction or practice involving

service or equipment has been filed with the commission, a] , the public

utility shall not [submit] file with the commission another general rate

application until all pending general rate applications [for increases in

rates submitted] filed by that public utility have been decided by the

commission unless, after application and hearing, the commission

determines that a substantial financial emergency would exist if the [other

application] public utility is not permitted to [be submitted] file another

general rate application sooner. The provisions of this subsection do not

prohibit the public utility from filing with the commission, while a

general rate application is

pending, an application to recover the increased cost of purchased fuel,

purchased power, or natural gas purchased for resale pursuant to

subsection 6 or an application to clear its deferred accounts pursuant to

subsection 7, if the public utility is otherwise authorized by those

provisions to file such an application.

6. A public utility may file an application to recover the increased cost

of purchased fuel, purchased power, or natural gas purchased for resale

once every 30 days. The provisions of this subsection do not apply to an

electric utility using deferred accounting pursuant to section 19 of [this

act.] Assembly Bill No. 369 of this session.

7. Except as otherwise provided in subsection 8 [, whenever] and

subsection 4 of NRS 704.100, if an electric utility using deferred

accounting pursuant to section 19 of [this act] Assembly Bill No. 369 of

this session files an application to clear its deferred accounts and to

change one or more of its rates [or charges] based upon changes in the

costs for purchased fuel or purchased power, the commission, after a

public hearing and by an appropriate order:

(a) Shall allow the electric utility to clear its deferred accounts by

refunding any credit balance or recovering any debit balance over a period

not to exceed 3 years, as determined by the commission.

(b) Shall not allow the electric utility to recover any debit balance, or

portion thereof, in an amount that would result in a rate of return during

the period of recovery that exceeds the rate of return authorized by the

commission in the most recently completed rate proceeding for the electric

utility.

8. Before allowing an electric utility to clear its deferred accounts

pursuant to subsection 7, the commission shall determine whether the

costs for purchased fuel and purchased power that the electric utility

recorded in its deferred accounts are recoverable and whether the revenues

that the electric utility collected from customers in this state for purchased

fuel and purchased power are properly recorded and credited in its

deferred accounts. The commission shall not allow the electric utility to

recover any costs for purchased fuel and purchased power that were the

result of any practice or transaction that was undertaken, managed or

performed imprudently by the electric utility.

9. [Whenever] If an electric utility files an application to clear its

deferred accounts pursuant to subsection 7 while a general rate application

is pending, the electric utility shall:

(a) Submit with its application to clear its deferred accounts information

relating to the cost of service and rate design; and

(b) Supplement its general rate application with the same information, if

such information was not submitted with the general rate application.

10. A utility facility identified in a 3-year plan submitted pursuant to

NRS 704.741 and accepted by the commission for acquisition or

construction pursuant to NRS 704.751 and the regulations adopted

pursuant thereto shall be deemed to be a prudent investment. The utility

may recover all just and reasonable costs of planning and constructing

such a facility.

11. As used in this section, “electric utility” has the meaning ascribed

to it in section 19 of [this act.] Assembly Bill No. 369 of this session.

Sec. 54. NRS 704.329 is hereby amended to read as follows:

704.329 1. Except as otherwise provided in [this section,] subsection

6, a person shall not merge with, directly acquire, indirectly acquire

through a subsidiary or affiliate, or otherwise directly or indirectly obtain

control of a public utility doing business in this state or an entity that holds

a controlling interest in such a public utility without first submitting to the

commission an application for authorization of the proposed [merger,

acquisition or other] transaction and obtaining authorization from the

commission.

2. Any [merger, acquisition or other] transaction that violates the

provisions of this section is void and unenforceable and is not valid for

any purpose.

3. Before authorizing a proposed [merger, acquisition or other]

transaction pursuant to this section, the commission shall consider the

effect of the proposed [merger, acquisition or other] transaction on the

public interest and the customers in this state. The commission shall not

authorize the proposed [merger, acquisition or other] transaction unless the

commission finds that the proposed [merger, acquisition or other]

transaction:

(a) Will be in the public interest; and

(b) Complies with the provisions of sections 8 to 18, inclusive, of [this

act,] Assembly Bill No. 369 of this session, if the proposed [merger,

acquisition or other] transaction is subject to those provisions.

4. The commission may base its authorization of the proposed [merger,

acquisition or other] transaction upon such terms, conditions or

modifications as the commission deems appropriate.

5. If the commission does not issue a final order regarding the

proposed [merger, acquisition or other] transaction within 180 days after

the date on which an application or amended application for authorization

of the proposed [merger, acquisition or other] transaction was filed with

the commission, and the proposed [merger, acquisition or other]

transaction is not subject to the provisions of sections 8 to 18, inclusive, of

[this act,] Assembly Bill No. 369 of this session, the proposed [merger,

acquisition or other] transaction shall be deemed to be authorized by the

commission.

6. The provisions of this section do not apply to [the]:

(a) The transfer of stock of a public utility doing business in this state or

to the transfer of the stock of an entity [holding]that holds a controlling

interest in such a public utility, if a transfer of not more than 25 percent of

the common stock of such a public utility or entity is proposed.

(b) Except as otherwise provided in this paragraph, a proposed

transaction involving a public utility doing business in this state

providing telecommunication services or an entity that holds a

controlling interest in such a public utility if, in the most recently

completed calendar year, not more than 10 percent of the gross

operating revenue of the public utility or the entity that holds a

controlling interest in the public utility was derived from intrastate

telecommunication services provided to retail customers in this state by

the public utility. Such a proposed transaction is not exempted from the

provisions of this section if:

(1) Not later than 30 days after the date on which the person

undertaking the proposed transaction submits the notification required

by 15 U.S.C. § 18a, the regulatory operations staff of the commission or

the consumer’s advocate requests an order from the commission

requiring the person to file an application for authorization of the

proposed transaction;

(2) The request alleges in sufficient detail that the proposed

transaction may materially affect retail customers of public utilities in

this state; and

(3) The commission issues an order requiring the person to file an

application for authorization of the proposed transaction.

7. As used in this section:

(a) “Person” means:

(1) A natural person;

(2) Any form of business or social organization and any other

nongovernmental legal entity, including, without limitation, a

corporation, partnership, association, trust or unincorporated

organization;

(3) A government or an agency or instrumentality of a government,

including, without limitation, this state or an agency or instrumentality

of this state; and

(4) A political subdivision of this state or of any other government

or an agency or instrumentality of a political subdivision of this state or

of any other government.

(b) “Transaction” means a merger, acquisition or change in control

described in subsection 1.

Sec. 55. NRS 704.68964 is hereby amended to read as follows:

704.68964 1. An electing carrier may, pursuant to this section and in

accordance with NRS 704.68976, exercise flexibility in the pricing of:

(a) Competitive services and discretionary services. The commission

shall not specify a maximum rate for any competitive services or

discretionary services of the electing carrier. The electing carrier shall,

with regard to any competitive or discretionary service that it provides, set

the price of that service above the price floor of the service.

(b) A package of services, which may include basic network services,

competitive services, discretionary services and other essential services.

2. Except as otherwise provided in this subsection, an electing carrier

may, upon 30-days’ notice to the commission in writing, exercise

flexibility in the pricing of its services pursuant to subsection 1 and is

exempt, with respect to the pricing of its services, from the provisions of

NRS 704.100 and 704.110 and the regulations of the commission relating

thereto. The notice must include a description in reasonable detail of:

(a) The characteristics of the services that will be subject to flexibility in

pricing;

(b) The terms and conditions applicable to the services;

availability of the services;

(d) The price or prices of the services or packages of services; and

(e) A certificate which provides that the electing carrier has prepared a

cost study of the price floor to support the price or prices for each service

and that, on and after the date on which the notice is filed with the

commission, any affected person may, upon request, inspect and copy the

cost study, subject to reasonable terms and conditions of any applicable

confidentiality and nondisclosure agreement relating to the

services.

The notice requirements of this subsection do not apply to an electing

carrier with respect to the pricing of competitive services or for packages

comprised exclusively of competitive services.

3. The price for a package of services must not be lower than the lesser

of:

(a) The sum of the price floors for each of the services contained in the

package; or

(b) The sum of the prices of the basic network services, as set forth in

the tariffs of the electing carrier, and the price floors for each of the other

services contained in the package.

4. The commission shall not specify a maximum rate for a package of

services.

5. Each of the services included in a package pursuant to paragraph (b)

of subsection 1 must be made available on an individual basis.

6. An electing carrier must provide 30-days’ notice to the

commission in writing before the electing carrier may implement any

amendment or change to an existing service noticed pursuant to

subsection 2.

Sec. 56. NRS 704.68972 is hereby amended to read as follows:

704.68972 1. An electing carrier may introduce new services upon

30-days’ notice to the commission in writing. The notice must include a

description in reasonable detail of:

(a) The characteristics of each new service;

(b) The terms and conditions applicable to each new service;

availability of each new service;

(d) The price or prices of each new service; and

(e) A certificate that provides that the electing carrier has prepared a

cost study of the price floor to support the price or prices for each new

service and that, on and after the date on which the notice is filed with the

commission, any affected person may, upon request, inspect and copy the

cost study, subject to reasonable terms and conditions of any applicable

confidentiality and nondisclosure agreement.

2. Each new service is subject to the conditions set forth in NRS

704.68964.

3. Each new service is exempt from the provisions of NRS 704.100

and 704.110 and the regulations of the commission relating thereto.

4. Unless otherwise classified by the commission as a competitive

service pursuant to its regulations, a new service must be classified as a

discretionary service for which the commission shall not specify a

maximum rate. The electing carrier shall set the price of the new service

above the price floor of the service.

5. As used in this section, a “new service” means a telecommunication

service:

(a) That provides a function, feature or capability which is materially

different from any service or services previously offered by the carrier; or

(b) Combines two or more previously provided new services.

Sec. 57. NRS 704.743 is hereby amended to read as follows:

704.743 1. A utility which supplies electricity in this state may apply

to the commission for authority to charge, as part of a program of optional

pricing, a higher rate for electricity that is generated from renewable

energy.

2. The program may provide the customers of the utility with the

option of paying a higher rate for electricity to support the increased use

by the utility of renewable energy in the generation of electricity.

3. As used in this section [:

(a) “Biomass” has the meaning ascribed to it in section 4 of this act.

(b) “Renewable energy” means a source of energy that occurs naturally

or is regenerated naturally, including, without limitation:

(1) Wind;

(2) Solar energy;

(3) Geothermal energy; and

(4) Biomass.

The term does not include coal, natural gas, oil, propane or any other fossil

fuel, or nuclear energy.] , “renewable energy” has the meaning ascribed

to it in section 7 of Senate Bill No. 372 of this session.

Sec. 58. NRS 704.767 is hereby amended to read as follows:

704.767 As used in NRS [704.767] 704.766 to 704.775, inclusive,

unless the context otherwise requires, the words and terms defined in NRS

704.768 to 704.772, inclusive, and section 40 of this act have the

meanings ascribed to them in those sections.

Sec. 59. NRS 704.771 is hereby amended to read as follows:

704.771 “Net metering system” means a facility or energy system for

the [production of electrical energy] generation of electricity that:

1. Uses [wind or solar] renewable energy as its primary source of

[fuel;] energy to generate electricity;

2. Has a generating capacity of not more than 10 kilowatts;

3. Is located on the customer-generator’s premises;

4. Operates in parallel with the utility’s transmission and distribution

facilities; and

5. Is intended primarily to offset part or all of the customer-generator’s

requirements for electricity.

Sec. 60. NRS 704.773 is hereby amended to read as follows:

704.773 1. A utility shall offer net metering, as set forth in NRS

704.775, to the customer-generators operating within its service area .

[until 100 of those customer-generators have accepted the offer.]

2. A utility:

(a) Shall offer to make available to each of its customer-generators who

has accepted its offer for net metering an energy meter that is capable of

registering the flow of electricity in two directions.

(b) May, at its own expense and with the written consent of the

customer-generator, install one or more additional meters to monitor the

flow of electricity in each direction.

increase the customer-generator’s minimum monthly charge to an amount

greater than that of other customers of the utility in the same rate class as

the customer-generator.

Sec. 61. NRS 704.775 is hereby amended to read as follows:

704.775 1. The billing period for net metering may be either a

monthly period or, with the written consent of the customer-generator, an

annual period.

2. The net energy measurement must be calculated in the following

manner:

(a) The utility shall measure the net electricity produced or consumed

during the billing period, in accordance with normal metering practices.

(b) If the electricity supplied by the utility exceeds the electricity

generated by the customer-generator which is fed back to the utility during

the billing period, the customer-generator must be billed for the net

electricity supplied by the utility.

back to the utility exceeds the electricity supplied by the utility during the

billing period [, neither] :

(1) Neither the utility nor the customer-generator is entitled to

compensation for electricity provided to the other during the billing period

[.] ; and

(2) The excess electricity which is fed back to the utility shall be

deemed to be electricity that the utility generated or acquired from a

renewable energy system for the purposes of complying with its portfolio

standard pursuant to sections 3 to 12, inclusive, of Senate Bill No. 372 of

this session.

Sec. 62. NRS 228.360 is hereby amended to read as follows:

228.360 The consumer’s advocate:

1. Shall intervene in and represent the public interest in [all] :

(a) All proceedings conducted pursuant to sections 8 to 18, inclusive, of

[this act.] Assembly Bill No. 369 of this session; and

(b) All proceedings conducted pursuant to NRS 704.070 to 704.110,

inclusive, and sections 41 to 46, inclusive, of this act in which an electric

utility has filed a general rate application or an application to clear its

deferred accounts.

2. May, with respect to all public utilities except railroads and

cooperative utilities, and except as otherwise provided in NRS 228.380:

(a) Conduct or contract for studies, surveys, research or expert

testimony relating to matters affecting the public interest or the interests of

utility customers.

(b) Examine any books, accounts, minutes, records or other papers or

property of any public utility subject to the regulatory authority of the

public utilities commission of Nevada in the same manner and to the same

extent as authorized by law for members of the public utilities commission

of Nevada and its staff.

initiate, appear or intervene in any proceeding concerning rates, charges,

tariffs, modifications of service or any related matter before the public

utilities commission of Nevada or any court, regulatory body, board,

commission or agency having jurisdiction over any matter which the

consumer’s advocate may bring before or has brought before the public

utilities commission of Nevada or in which the public interest or the

interests of any particular class of utility customers are involved. The

consumer’s advocate may represent the public interest or the interests of

any particular class of utility customers in any such proceeding, and he is a

real party in interest in the proceeding.

3. As used in this section, “electric utility” has the meaning ascribed

to it in section 19 of Assembly Bill No. 369 of this session.

Sec. 63. NRS 228.390 is hereby amended to read as follows:

228.390 Except as otherwise provided in NRS 704.110 and sections 8

to 18, inclusive, of [this act:] Assembly Bill No. 369 of this session:

1. The consumer’s advocate has sole discretion to represent or refrain

from representing the public interest and any class of customers in any

proceeding.

2. In exercising his discretion, the consumer’s advocate shall consider

the importance and extent of the public interest or the customers’ interests

involved and whether those interests would be adequately represented

without his participation.

3. If the consumer’s advocate determines that there would be a conflict

between the public interest and any particular class of customers or any

inconsistent interests among the classes of customers involved in a

particular matter, he may choose to represent one of the interests, to

represent no interest, or to represent one interest through his office and

another or others through outside counsel engaged on a case basis.

Sec. 64. Chapter 349 of NRS is hereby amended by adding thereto the

provisions set forth as sections 65 to 68, inclusive, of this act.

Sec. 65. “Biomass” means any organic matter that is available on a

renewable basis, including, without limitation:

1. Agricultural crops and agricultural wastes and residues;

2. Wood and wood wastes and residues;

3. Animal wastes;

4. Municipal wastes; and

5. Aquatic plants.

Sec. 66. “Fuel cell” means a device or contrivance that, through the

chemical process of combining ions of hydrogen and oxygen, produces

electricity and water.

Sec. 67. 1. “Renewable energy” means a source of energy that

occurs naturally or is regenerated naturally, including, without

limitation:

(a) Biomass;

(b) Fuel cells;

(d) Solar energy;

(e) Waterpower; and

(f) Wind.

2. The term does not include coal, natural gas, oil, propane or any

other fossil fuel, or nuclear energy.

Sec. 68. 1. “Renewable energy generation project” means a project

involving an electric generating facility or system that uses renewable

energy as its primary source of energy to generate electricity.

2. The term does not include a project involving an electric

generating facility or system that uses nuclear energy, in whole or in

part, to generate electricity.

Sec. 69. NRS 349.400 is hereby amended to read as follows:

349.400 As used in NRS 349.400 to 349.670, inclusive, unless the

context otherwise requires, the words and terms defined in NRS 349.410

to 349.540, inclusive, and sections 65 to 68, inclusive, of this act have the

meanings ascribed to them in those sections.

Sec. 70. NRS 349.430 is hereby amended to read as follows:

349.430 “Cost of a project” means all or a designated part of the cost

of any project, including any incidental cost pertaining to the project. The

cost of a project may include, among other costs, the costs of:

1. Surveys, audits, preliminary plans, other plans, specifications,

estimates and other costs of preparations;

2. Appraising, printing, estimating, advice, services of engineers,

architects, financial consultants, attorneys, clerical personnel and other

agents and employees;

3. Publishing, posting, mailing and otherwise giving notice, filing or

recording instruments, taking options and fees to banks;

4. Establishment of a reserve for contingencies;

5. Interest on bonds for any time which does not exceed the estimated

period of construction plus 1 year, discounts on bonds, reserves for the

payment of the principal of and interest on bonds, replacement expenses

and other costs of issuing bonds;

6. Amending any resolution or other instrument authorizing the

issuance of, or otherwise relating to, bonds for the project; and

7. Short-term financing,

and the expense of operation and maintenance of the project.

Sec. 71. NRS 349.510 is hereby amended to read as follows:

349.510 “Project” means:

1. Any land, building or other improvement and all real and personal

properties necessary in connection therewith, excluding inventories, raw

materials and working capital, whether or not in existence, suitable for

new construction, improvement, rehabilitation or redevelopment for:

(a) Industrial uses, including assembling, fabricating, manufacturing,

processing or warehousing;

(b) Research and development relating to commerce or industry,

including professional, administrative and scientific offices and

laboratories;

(d) Civic and cultural enterprises open to the general public, including

theaters, museums and exhibitions, together with buildings and other

structures, machinery, equipment, facilities and appurtenances thereto

which the director deems useful or desirable in connection with the

conduct of any such enterprise;

(e) An educational institution operated by a nonprofit organization not

otherwise directly funded by the state which is accredited by a nationally

recognized educational accrediting association;

(f) Health and care facilities and supplemental facilities for health and

care; [or]

(g) The purposes of a corporation for public benefit [.]; or

(h) A renewable energy generation project.

2. Any real or personal property appropriate for addition to a hotel,

motel, apartment building, casino or office building to protect it or its

occupants from fire.

3. The preservation of a historic structure or its restoration for its

original or another use, if the plan has been approved by the office of

historic preservation of the department of cultural affairs.

Sec. 72. NRS 349.560 is hereby amended to read as follows:

349.560 It is the intent of the legislature to authorize the director to

finance, acquire, own, lease, improve and dispose of properties to:

1. Promote industry and employment and develop trade by inducing

manufacturing, industrial, warehousing and commercial enterprises and

organizations for research and development to locate, remain or expand in

this state to further prosperity throughout the state and to further the use of

the agricultural products and the natural resources of this state.

2. Enhance public safety by protecting hotels, motels, apartment

buildings, casinos, office buildings and their occupants from fire.

3. Promote the public health by enabling the acquisition, development,

expansion and maintenance of health and care facilities and supplemental

facilities for health and care facilities which will provide services of high

quality at reasonable rates to the residents of the community in which the

facilities are situated.

4. Promote the educational, cultural, economic and general welfare of

the public by financing civic and cultural enterprises, certain educational

institutions and the preservation or restoration of historic structures.

5. Promote the social welfare of the residents of this state by enabling

a corporation for public benefit to acquire, develop, expand and maintain

facilities that provide services for those residents.

6. Promote the generation of electricity in this state.

Sec. 73. NRS 349.565 is hereby amended to read as follows:

349.565 1. The director may not, under NRS 349.400 to 349.670,

inclusive:

(a) Operate any manufacturing, industrial, warehousing or commercial

enterprise or an organization for research and development or any health

and care facility to which he provided assistance; or

(b) Except as otherwise provided in subsection 2, assist any

manufacturing, industrial, warehousing or commercial enterprise or an

organization for research and development to locate in a county or city

which would result in the abandonment or closure of an existing facility of

a like nature located within that county or city, unless the existing facility

is operated by the contemplated lessee, purchaser or other obligor or an

affiliate of such a person and the facility is to be abandoned or closed

because of obsolescence, lack of available labor or limitations at the site of

the facility.

2. The provisions of paragraph (b) of subsection 1 do not apply to:

(a) Health and care facilities and supplemental facilities for a health and

care facility;

(b) Civic and cultural enterprises open to the general public;

279.382 to 279.685, inclusive;

(d) Enterprises located in an area designated as an empowerment zone

pursuant to sections 1391 to 1397, inclusive, of the Internal Revenue Code

of 1986, 26 U.S.C. §§ 1391-97, future amendments to those sections and

the corresponding provisions of future internal revenue laws;

(e) Facilities established by a corporation for public benefit; [and]

(f) Enterprises whose products are substantially sold, used or distributed

outside this state [.]; and

(g) Renewable energy generation projects.

Sec. 74. NRS 349.580 is hereby amended to read as follows:

349.580 Except as otherwise provided in NRS 349.595 and 349.640,

the director shall not finance a project unless, before financing:

1. The director finds that:

(a) The project to be financed has been approved for financing pursuant

to the requirements of NRS 244A.669 to 244A.763, inclusive, or 268.512

to 268.568, inclusive; and

(b) There has been a request by a city or county to have the director

issue bonds to finance the project; or

2. The director finds and both the board and the governing body of the

city or county where the project is to be located approve the findings of

the director that:

(a) The project consists of any land, building or other improvement and

all real and personal properties necessary in connection therewith,

excluding inventories, raw materials and working capital, whether or not

in existence, which is suitable for new construction, improvement,

preservation, restoration, rehabilitation or redevelopment:

(1) For manufacturing, industrial, warehousing, civic, cultural or

other commercial enterprises, educational institutions, corporations for

public benefit or organizations for research and development;

(2) For a health and care facility or a supplemental facility for a

health and care facility;

(3) Of real or personal property appropriate for addition to a hotel,

motel, apartment building, casino or office building to protect it or its

occupants from fire; [or]

(4) Of a historic structure; or

(5) For a renewable energy generation project;

(b) The project will provide a public benefit;

financial resources to place the project in operation and to continue its

operation, meeting the obligations of the lease, purchase contract or

financing agreement;

(d) There are sufficient safeguards to assure that all money provided by

the department will be expended solely for the purposes of the project;

(e) The project would be compatible with existing facilities in the area

adjacent to the location of the project;

(f) The project [is]:

(1) Is compatible with the plan of the state for economic

diversification and development or for the marketing and development of

tourism in this state; or

(2) Promotes the generation of electricity in this state;

(g) Through the advice of counsel or other reliable source, the project

has received all approvals by the local, state and federal governments

which may be necessary to proceed with construction, improvement,

rehabilitation or redevelopment of the project; and

(h) There has been a request by a city, county, lessee, purchaser, other

obligor or other enterprise to have the director issue revenue bonds for

industrial development to finance the project.

Sec. 75. Chapter 523 of NRS is hereby amended by adding thereto the

provisions set forth as sections 76 to 87, inclusive, of this act.

Sec. 76. “Biomass” means any organic matter that is available on a

renewable basis, including, without limitation:

1. Agricultural crops and agricultural wastes and residues;

2. Wood and wood wastes and residues;

3. Animal wastes;

4. Municipal wastes; and

5. Aquatic plants.

Sec. 77. “Consumer’s advocate” means the consumer’s advocate of

the bureau of consumer protection in the office of the attorney general.

Sec. 78. “Director” means the director of the office of energy

appointed pursuant to section 87 of this act.

Sec. 79. “Fuel cell” means a device or contrivance that, through the

chemical process of combining ions of hydrogen and oxygen, produces

electricity and water.

Sec. 80. 1. “Renewable energy” means a source of energy that

occurs naturally or is regenerated naturally, including, without

limitation:

(a) Biomass;

(b) Fuel cells;

(d) Solar energy;

(e) Waterpower; and

(f) Wind.

2. The term does not include coal, natural gas, oil, propane or any

other fossil fuel, or nuclear energy.

Sec. 81. 1. “Renewable energy generation project” means a project

involving an electric generating facility or system that uses renewable

energy as its primary source of energy to generate electricity.

2. The term does not include a project involving an electric

generating facility or system that uses nuclear energy, in whole or in

part, to generate electricity.

Sec. 82. “Task force” means the task force for renewable energy

and energy conservation created by section 84 of this act.

Sec. 83. 1. The trust fund for renewable energy and energy

conservation is hereby created in the state treasury.

2. The task force shall administer the fund. As administrator of the

fund, the task force:

(a) Shall maintain the financial records of the fund;

(b) Shall invest the money in the fund as the money in other state

funds is invested;

(d) Shall maintain any instruments that evidence investments made

with the money in the fund;

(e) May contract with vendors for any good or service that is

necessary to carry out the provisions of this section; and

(f) May perform any other duties that are necessary to administer the

fund.

3. The interest and income earned on the money in the fund must,

after deducting any applicable charges, be credited to the fund. All

claims against the fund must be paid as other claims against the state

are paid.

4. Not more than 2 percent of the money in the fund may be used to

pay the costs of administering the fund.

5. The money in the fund remains in the fund and does not revert to

the state general fund at the end of any fiscal year.

6. All money that is deposited or paid into the fund may only be

expended pursuant to an allocation made by the task force. Money

expended from the fund must not be used to supplant existing methods

of funding that are available to public agencies.

Sec. 84. 1. The task force for renewable energy and energy

conservation is hereby created. The task force consists of nine members

who are appointed as follows:

(a) Two members appointed by the majority leader of the senate, one

of whom represents the interests of the renewable energy industry in this

state with respect to biomass and the other of whom represents the

interests of the mining industry in this state.

(b) Two members appointed by the speaker of the assembly, one of

whom represents the interests of the renewable energy industry in this

state with respect to geothermal energy and the other of whom

represents the interests of a nonprofit organization dedicated to the

protection of the environment or to the conservation of energy or the

efficient use of energy.

represent the interests of the renewable energy industry in this state with

respect to solar energy.

(d) One member appointed by the minority leader of the assembly to

represent the interests of the public utilities in this state.

(e) Two members appointed by the governor, one of whom represents

the interests of the renewable energy industry in this state with respect to

wind and the other of whom represents the interests of the gaming

industry in this state.

(f) One member appointed by the consumer’s advocate to represent

the interests of the consumers in this state.

2. A member of the task force:

(a) Must be a citizen of the United States and a resident of this state.

(b) Must have training, education, experience or knowledge

concerning:

(1) The development or use of renewable energy;

(2) Financing, planning or constructing renewable energy

generation projects;

(3) Measures which conserve or reduce the demand for energy or

which result in more efficient use of energy;

(4) Weatherization;

(5) Building and energy codes and standards;

(6) Grants or incentives concerning energy;

(7) Public education or community relations; or

(8) Any other matter within the duties of the task force.

department of state government.

3. After the initial terms, the term of each member of the task force is

3 years. A vacancy on the task force must be filled for the remainder of

the unexpired term in the same manner as the original appointment. A

member may be reappointed to the task force.

4. A member of the task force who is an officer or employee of this

state or a political subdivision of this state must be relieved from his

duties without loss of his regular compensation so that he may prepare

for and attend meetings of the task force and perform any work that is

necessary to carry out the duties of the task force in the most timely

manner practicable. A state agency or political subdivision of this state

shall not require an officer or employee who is a member of the task

force to:

(a) Make up the time he is absent from work to carry out his duties as

a member of the task force; or

(b) Take annual leave or compensatory time for the absence.

Sec. 85. 1. The members of the task force shall select a chairman

and vice chairman from among their membership. The vice chairman

shall perform the duties of the chairman during any absence of the

chairman.

2. The chairman and vice chairman serve in those positions for

terms of 1 year. If a vacancy occurs in the chairmanship or vice

chairmanship, the vacancy must be filled for the remainder of the

unexpired term in the same manner as the original selection.

3. A majority of the members of the task force constitutes a quorum.

A majority of the members present during a quorum may exercise all the

power and authority conferred on the task force.

4. The task force shall meet at least four times annually or more

frequently at the discretion of the chairman.

5. Except as otherwise provided in this subsection, the members of

the task force serve without compensation and are not entitled to the per

diem and travel expenses provided for state officers and employees

generally. For each day of attendance at a meeting of the task force and

while engaged in the business of the task force, a member of the task

force who:

(a) Is an officer or employee of this state or a political subdivision of

this state is entitled to receive the per diem and travel expenses provided

for state officers and employees generally, paid by his governmental

employer.

(b) Represents the interests of a nonprofit organization is entitled to

receive the per diem and travel expenses provided for state officers and

employees generally, paid from the trust fund for renewable energy and

energy conservation.

6. The consumer’s advocate shall provide the task force with

administrative and clerical support and with such other assistance as

may be necessary for the task force to carry out its duties. Such support

and assistance must include, without limitation, making arrangements

for facilities, equipment and other services in preparation for and during

meetings.

Sec. 86. 1. The task force shall:

(a) Advise the office of energy in the development and periodic review

of the comprehensive state energy plan with regard to the use of

renewable energy and the use of measures which conserve or reduce the

demand for energy or which result in more efficient use of energy.

(b) Coordinate its activities and programs with the activities and

programs of the office of energy, the consumer’s advocate and the

public utilities commission of Nevada and other federal, state and local

officers and agencies that promote, fund, administer or operate activities

and programs related to the use of renewable energy and the use of

measures which conserve or reduce the demand for energy or which

result in more efficient use of energy.

energy conservation to:

(1) Educate persons and entities concerning renewable energy and

measures which conserve or reduce the demand for energy or which

result in more efficient use of energy.

(2) Create incentives for investment in and the use of renewable

energy and measures which conserve or reduce the demand for energy

or which result in more efficient use of energy.

(3) Distribute grants and other money to establish programs and

projects which incorporate the use of renewable energy and measures

which conserve or reduce the demand for energy or which result in more

efficient use of energy.

(4) Conduct feasibility studies, including, without limitation, a

feasibility study concerning the establishment of an incentive fund,

grants or other programs to enable or assist residential, small

commercial and agricultural customers to reduce the cost of purchasing

on-site generation systems, net metering systems and distributed

generation systems that use renewable energy.

(d) Take any other actions that the task force deems necessary to carry

out its duties, including, without limitation, contracting with consultants,

if necessary, for the purposes of program design or to assist the task

force in carrying out its duties.

2. The task force shall prepare an annual report concerning its

activities and programs and submit the report to the legislative

commission and the governor on or before January 30 of each year. The

annual report must include, without limitation:

(a) A description of the objectives of each activity and program;

(b) An analysis of the effectiveness and efficiency of each activity and

program in meeting the objectives of the activity or program;

from the trust fund for renewable energy and energy conservation and a

detailed description of the use of that money for each activity and

program;

(d) An analysis of the coordination between the task force and other

officers and agencies; and

(e) Any changes planned for each activity and program.

3. As used in this section:

(a) “Distributed generation system” means a facility or system for the

generation of electricity that is in close proximity to the place where the

electricity is consumed.

(b) “Net metering system” has the meaning ascribed to it in NRS

704.771.

Sec. 87. 1. The office of energy is hereby created within the office

of the governor.

2. The governor shall appoint the director. The director:

(a) Is in the unclassified service of the state; and

(b) Serves at the pleasure of the governor.

3. The director may, within the limits of available money, employ:

(a) Such persons in the unclassified service of the state as the director

determines to be necessary to carry out the duties of the office of energy

pursuant to this chapter; and

(b) Such additional personnel as may be required to carry out the

duties of the office of energy pursuant to this chapter, who must be in

the classified service of the state.

4. A person employed by the director pursuant to this section must be

qualified by training and experience to perform the duties for which the

director employs him.

5. The director and the persons employed by the director shall not

have any conflict of interest relating to the performance of their duties

pursuant to this chapter.

6. The provisions of NRS 223.085 do not apply to the director or to

any person employed by the director pursuant to this section.

Sec. 88. NRS 523.011 is hereby amended to read as follows:

523.011 1. The legislature finds that:

(a) Energy is essential to the economy of the state and to the health,

safety and welfare of the people of the state.

(b) The state has a responsibility to encourage the maintenance of a

reliable and economical supply of energy at a level which is consistent

with the protection of environmental quality.

range of measures which reduce wasteful uses of energy resources.

(d) Planning for energy conservation and future energy requirements

should include consideration of state, regional and local plans for land use,

urban expansion, transportation systems, environmental protection and

economic development.

(e) Government and private enterprise need to accelerate research and

development of [alternative] sources of renewable energy and to improve

technology related to the research and development of existing sources of

energy.

(f) While government and private enterprise are seeking to accelerate

research and development of [alternative] sources of renewable energy,

they must also prepare for and respond to the advent of competition within

the electrical energy industry and are, therefore, encouraged to maximize

the use of indigenous energy resources to the extent competitively and

economically feasible.

(g) Prevention of delays and interruptions in providing energy,

protecting environmental values and conserving energy require expanded

authority and capability within state government.

2. It is the policy of this state to encourage participation with all levels

of government and private enterprise in cooperative state, regional and

national programs to assure adequate supplies of energy resources and

markets for such energy resources.

3. It is the policy of this state to assign the responsibility for managing

and conserving energy and its sources to agencies whose other programs

are similar, to avoid duplication of effort in developing policies and

programs for energy.

Sec. 89. NRS 523.021 is hereby amended to read as follows:

523.021 As used in this chapter, unless the context otherwise requires

1. “Department” means the department of business and industry.

2. “Director” means the director of the department.] , the words and

terms defined in sections 76 to 82, inclusive, of this act have the

meanings ascribed to them in those sections.

Sec. 90. NRS 523.051 is hereby amended to read as follows:

523.051 The director may:

1. Administer any gifts or grants which the department is authorized to

accept for the purposes of this chapter.

2. Expend money received from those gifts or grants or from

legislative appropriations to contract with qualified persons or institutions

for research in the production and efficient use of energy resources.

3. Enter into any cooperative agreement with any federal or state

agency or political subdivision.

4. Participate in any program established by the Federal Government

relating to sources of energy and adopt regulations appropriate to that

program.

5. Assist developers of renewable energy generation projects in

preparing and making requests to obtain money for development

through the issuance industrial development revenue bonds pursuant to

NRS 349.400 to 349.670, inclusive and sections 65 to 68, inclusive, of

this act.

6. Adopt any regulations that the director determines are necessary

to carry out the duties of the office of energy pursuant to this chapter.

Sec. 91. NRS 523.131 is hereby amended to read as follows:

523.131 The director shall:

1. Acquire and analyze information relating to energy and to the

supply, demand and conservation of its sources.

2. Utilize all available public and private means to provide information

to the public about problems relating to energy and to explain how

conservation of energy and its sources may be accomplished.

3. Review and evaluate information which identifies trends and

permits forecasting of the energy available to the state. Such forecasts

must include estimates on:

(a) The level of demand for energy in the state for 5-, 10- and 20-year

periods;

(b) The amount of energy available to meet each level of demand;

of energy; and

(d) The sources of renewable energy and other alternative sources of

energy which are available and their possible effects.

4. Study means of reducing wasteful, inefficient, unnecessary or

uneconomical uses of energy and encourage the maximum utilization of

existing sources of energy in the state.

5. Encourage the development of [any existing and alternative] :

(a) Any sources of renewable energy and any other energy projects

which will benefit the state [.] ; and

(b) Any measures which conserve or reduce the demand for energy or

which result in more efficient use of energy.

6. In conjunction with the desert research institute, review policies

relating to the research and development of the state’s geothermal

resources and make recommendations to the appropriate state and federal

agencies for establishing methods of developing the geothermal resources

within the state.

7. Solicit and serve as the point of contact for grants and other

money from the Federal Government and other sources to promote:

(a) Energy projects that enhance the economic development of the

state;

(b) The use of renewable energy; and

energy or which result in more efficient use of energy.

8. Coordinate the activities and programs of the office of energy with

the activities and programs of the task force, the consumer’s advocate

and the public utilities commission of Nevada and other federal, state

and local officers and agencies that promote, fund, administer or

operate activities and programs related to the use of renewable energy

and the use of measures which conserve or reduce the demand for

energy or which result in more efficient use of energy.

9. Carry out all other directives concerning energy that are

prescribed by the governor.

Sec. 92. NRS 523.141 is hereby amended to read as follows:

523.141 1. The director shall prepare a comprehensive state energy

[conservation] plan which provides [methods for conserving and

improving efficiency in the use of energy resources and establishes

procedures for reducing the rate of growth of energy demand and

minimizing the adverse social, economic, political and environmental

effects of increasing energy resource consumption.

2. The plan must be presented to the governor, and upon approval by

the governor, may be submitted by him in compliance with any program

established by the Federal Government.] for the promotion of:

(a) Energy projects that enhance the economic development of the

state;

(b) The use of renewable energy; and

energy or which result in more efficient use of energy.

2. The comprehensive state energy plan must include provisions for:

(a) The assessment of the potential benefits of proposed energy

projects on the economic development of the state.

(b) The education of persons and entities concerning renewable

energy and measures which conserve or reduce the demand for energy

or which result in more efficient use of energy.

renewable energy and measures which conserve or reduce the demand

for energy or which result in more efficient use of energy.

(d) Grants and other money to establish programs and conduct

activities which promote:

(1) Energy projects that enhance the economic development of the

state;

(2) The use of renewable energy; and

(3) The use of measures which conserve or reduce the demand for

energy or which result in more efficient use of energy.

(e) The development or incorporation by reference of model and

uniform building and energy codes and standards which are written in

language which is easy to understand and which include performance

standards for conservation of energy and efficient use of energy.

(f) Oversight and accountability with respect to all programs and

activities described in this subsection.

(g) Any other matter that the task force determines to be relevant to

the issues of energy resources, energy use, energy conservation and

energy efficiency.

Sec. 93. NRS 523.161 is hereby amended to read as follows:

523.161 1. [Except for those energy resources for whose priorities of

use are established by the public utilities commission of Nevada, the] The

director may recommend to state agencies, local governments and

appropriate private persons and entities, standards for conservation of

energy and its sources and for carrying out the state comprehensive

energy plan . [for the conservation of energy.]

2. In recommending such standards , the director shall consider the

usage of energy and its sources in the state and the methods available for

conservation of those sources.

Sec. 94. NRS 523.164 is hereby amended to read as follows:

523.164 1. The director shall adopt regulations for the conservation

of energy in buildings, including manufactured homes, which establish the

minimum standards for:

(a) The construction of floors, walls, ceilings and roofs;

(b) The equipment and systems for heating, ventilation and air

-conditioning;

(d) Insulation; and

(e) Other factors which affect the use of energy in a building.

2. The director may exempt a building from a standard if he

determines that application of the standard to the building would not

accomplish the purpose of the regulations.

3. The regulations must authorize allowances in design and

construction for [solar, wind or any other renewable source] sources of

renewable energy used to supply all or a part of the energy required in a

building.

4. The standards adopted by the director are the minimum standards

for the conservation of energy which apply only to areas in which the

governing body of the local government has not adopted standards for the

conservation of energy in buildings. Such governing bodies shall assist the

director in the enforcement of the regulations adopted pursuant to this

section.

5. The director shall solicit comments regarding the adoption of

regulations pursuant to this section from:

(a) Persons in the business of constructing and selling homes;

(b) Contractors;

(d) Local building inspectors; and

(e) The general public,

before adopting any regulations. The director must conduct at least three

hearings in different locations in the state, after giving 30 days’ notice of

each hearing, before he may adopt any regulations pursuant to this section.

Sec. 95. NRS 651.040 is hereby amended to read as follows:

651.040 1. As used in this section, unless the context otherwise

requires:

(a) “Establishment” means any hotel, motel, inn or motor court.

(b) “Owner” or “keeper” means any person, firm, association or

corporation.

or accommodations.

2. The rates listed on the printed statement required to be maintained

by an owner or keeper of an establishment pursuant to NRS 651.030 must

include [the] :

(a) The daily rate of the room for occupancy by one person [,] and for

occupancy by two persons [, the] ;

(b) The additional charge, if any, for occupancy by each additional

person over two persons [and the] ;

room [.] ; and

(d) The additional charge, if any, to offset energy costs incurred by the

establishment.

3. Every establishment shall maintain a registration card for each room

and supply the person or persons registering for accommodations a receipt.

Both the registration card and the receipt must reflect the type of

accommodations supplied, the number of persons occupying the

accommodation and the rate charged each person therefor. An

establishment shall not charge more than the rates listed on the printed

statement required to be maintained by an owner or keeper of an

establishment pursuant to NRS 651.030

[3.] 4. For any violation of this section, or any provision herein

contained, the offender shall forfeit to the injured party 3 times the amount

of the sum charged in excess of what he is entitled to charge.

[4.] 5. Any owner or keeper of any establishment who violates any of

the provisions of this section is guilty of a misdemeanor.

Sec. 96. Section 1 of Assembly Bill No. 197 of this session is hereby

amended to read as follows:

Section 1. Chapter 704 of NRS is hereby amended by adding

thereto a new section to read as follows:

1. On and after October 1, 2001, each electric utility shall

disclose to its retail customers information about electric services,

and any products and services relating thereto, that are being

provided to or purchased for those retail customers by the electric

utility. The disclosure must:

(a) Be in a standard, uniform format established by the

commission by regulation;

(b) Be included:

(1) At least two times each calendar year, as an insert in the

bills that the electric utility sends to its retail customers; and

(2) If the electric utility maintains a website on the Internet or

any successor to the Internet, on that website; and

readily evaluate his options for obtaining electric services or any

products or services relating thereto.

2. A disclosure required by this section must include, if

applicable:

(a) The average mix of energy sources used to generate the

electricity sold by the electric utility to the retail customer. An

electric utility may, if available, use a regional average that has

been determined by the commission for that portion of electricity

sold by the electric utility to the retail customer for which the

specific mix of energy sources cannot be discerned.

(b) The average emissions, measured in pounds per megawatt

-hour, of:

(1) Any high-level radioactive waste, sulfur dioxide, carbon

dioxide, oxides of nitrogen and heavy metals released in this state

from the generation of the electricity sold by the electric utility to

the retail customer; and

(2) Any other substances released in this state from the

generation of the electricity sold by the electric utility to the retail

customer which the commission, in cooperation with the division of

environmental protection of the state department of conservation

and natural resources, determines may cause a significant health or

environmental impact and for which sufficiently accurate and

reliable data is available.

If an electric utility uses a regional average for the mix of energy

sources pursuant to paragraph (a), the electric utility shall, if

available, use for the average emissions pursuant to this paragraph

a regional calculation that has been determined by the commission.

(d) Information concerning any energy programs that provide

assistance to retail customers with low incomes, including, without

limitation, information on the procedures to apply for such

programs.

3. An electric utility:

(a) Shall make the disclosures required pursuant to this section

in accordance with the requirements adopted by the commission as

to form and substance; and

(b) Shall ensure that it provides the information in compliance

with all applicable state and federal law governing unfair

advertising and labeling.

4. The commission shall adopt such regulations concerning

form and substance for the disclosures required by this section as

are necessary to ensure that retail customers are provided with

sufficient information so that they can readily evaluate their

options for obtaining electric services and any products and

services relating thereto.

5. The provisions of this section do not require an electric utility

to disclose to its retail customers any information about electric

services, and any products and services relating thereto, that are

subject to the provisions of sections 3 to 26, inclusive, of Assembly

Bill No. 661 of this session.

6. As used in this section:

(a) “Electric utility” has the meaning ascribed to it in section 19

of Assembly Bill No. 369 of this session.

(b) “Energy source” includes, without limitation:

(1) Coal, natural gas, oil, propane and any other fossil fuel;

(2) Geothermal energy, solar energy, hydroelectric energy,

nuclear energy, wind, biofuel and biomass; and

(3) Any other specific energy source that is used to generate

the electricity provided to the retail customer.

Sec. 97. Assembly Bill No. 369 of this session is hereby amended by

adding thereto a new section designated sec. 15.5, following sec. 15, to

read as follows:

Sec. 15.5. The provisions of sections 8 to 18, inclusive, of this

act do not prohibit an electric utility from pledging, mortgaging,

granting a security interest in or otherwise encumbering any of its

generation assets or other property for the purpose of securing

indebtedness of the electric utility which exists on the effective date

of this act or which is issued or incurred by the electric utility after

the effective date of this act in financing transactions approved by

the commission.

Sec. 98. Section 35 of Assembly Bill No. 369 of this session is hereby

amended to read as follows:

Sec. 35. Except as otherwise provided in section 36 of this act

and notwithstanding the provisions of any other specific statute to the

contrary:

1. An electric utility shall not file an application for a fuel and

purchased power rider on or after the effective date of this act.

2. Each application for a fuel and purchased power rider filed by

an electric utility which is pending with the commission on the

effective date of this act and which the electric utility did not place

into effect before or on April 1, 2001, is void and unenforceable and

is not valid for any purpose after April 1, 2001.

3. If, before March 1, 2001, an electric utility incurred any costs

for fuel or purchased power, including, without limitation, any costs

for fuel or purchased power recorded or carried on the books and

records of the electric utility, and those costs were not recovered or

could not be recovered pursuant to a fuel and purchased power rider

placed into effect by the electric utility before March 1, 2001, the

electric utility is not entitled, on or after March 1, 2001, to recover

any of those costs for fuel or purchased power from customers, and

the commission shall not allow the electric utility to recover any of

those costs for fuel or purchased power from customers.

4. Except as otherwise provided in this section, on and after the

effective date of this act:

(a) The commission shall not take any further action on the

comprehensive energy plan, and each electric utility that jointly filed

the comprehensive energy plan shall be deemed to have withdrawn

the comprehensive energy plan;

(b) The rates that each electric utility placed into effect on

March 1, 2001, pursuant to the comprehensive energy plan shall be

deemed to be a component of the electric utility’s rates for fuel and

purchased power; and

utility [before April] for the period of March 1, 2001, to March 31,

2001, inclusive, from the rates that each electric utility placed into

effect on March 1, 2001, pursuant to the comprehensive energy plan

shall be deemed to be a credit in the electric utility’s deferred

accounts.

5. On or before October 1, 2001, each electric utility that

primarily serves densely populated counties shall file a general rate

application pursuant to subsection 3 of NRS 704.110, as amended by

this act [.] and Assembly Bill No. 661 of this session. On or before

December 1, 2001, each electric utility that primarily serves densely

populated counties shall file an application to clear its deferred

accounts pursuant to subsection 7 of NRS 704.110, as amended by

this act [.] and Assembly Bill No. 661 of this session. After such an

electric utility files the application to clear its deferred accounts, the

commission shall investigate and determine whether the rates that the

electric utility placed into effect on March 1, 2001, pursuant to the

comprehensive energy plan are just and reasonable and reflect

prudent business practices. On the date on which the commission

issues a final order on the general rate application, the commission

shall issue a final order on the electric utility’s application to clear its

deferred accounts. The total rates to provide electric service that were

in effect on April 1, 2001, for the electric utility must remain in effect

until the

date on which the commission issues a final order on the general rate

application. The commission shall not adjust the rates of the electric

utility during this period unless such an adjustment is absolutely

necessary to avoid rates that are confiscatory under the Constitution

of the United States or the constitution of this state. The commission:

(a) May make such an adjustment only to the extent that it is

absolutely necessary to avoid an unconstitutional result; and

(b) Shall not, in any proceedings concerning such an adjustment,

approve any rate or grant any relief that is not absolutely necessary to

avoid an unconstitutional result.

After the electric utility files the general rate application that is

required by this subsection, the electric utility shall file general rate

applications in accordance with subsection 3 of NRS 704.110, as

amended by this act [.] and Assembly Bill No. 661 of this session.

After the electric utility files the application to clear its deferred

accounts that is required by this subsection, the electric utility shall

file applications to clear its deferred accounts in accordance with

section 19 of this act and subsection 7 of NRS 704.110, as amended

by this act [.] and Assembly Bill No. 661 of this session.

6. On or before December 1, 2001, each electric utility that

primarily serves less densely populated counties shall file a general

rate application pursuant to subsection 3 of NRS 704.110, as

amended by this act [.] and Assembly Bill No. 661 of this session.

On or before February 1, 2002, each electric utility that primarily

serves less densely populated counties shall file an application to

clear its deferred accounts pursuant to subsection 7 of NRS 704.110,

as amended by this act [.] and Assembly Bill No. 661 of this session.

After such an electric utility files the application to clear its deferred

accounts, the commission shall investigate and determine whether the

rates that the electric utility placed into effect on March 1, 2001,

pursuant to the comprehensive energy plan are just and reasonable

and reflect prudent business practices. On the date on which the

commission issues a final order on the general rate application, the

commission shall issue a final order on the electric utility’s

application to clear its deferred accounts. The total rates to provide

electric service that were in effect on April 1, 2001, for the electric

utility must remain in effect until the date on which the commission

issues a final order on the general rate application. The commission

shall not adjust the rates of the electric utility during this period

unless such an adjustment is absolutely necessary to avoid rates that

are confiscatory under the Constitution of the United States or the

constitution of this state. The commission: